German property is booming

Germany's policy makers fear the country's housing market could be in a bubble.

German policymakers, ever wary of rising prices, have begun to fret that their housing market could be developing a bubble.

In 2010 and 2011, house prices rose by 2.5% and 5.5% respectively. In Berlin and Munich, apartment prices increased by around 10% last year. Sales have soared: "German apartments are getting ripped out of people's hands", says Andre Adami of BulwienGesa. Rents are buoyant, having climbed by 8.3% in Berlin over the past 12 months.

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