Germany’s property gold rush

Property prices have begun to soar in Germany as savers seek refuge from rising inflation. But what does this mean for the rest of Europe?

German property prices have been stagnant for most of the past two decades. But in the past few years, the mood in some parts of the country has started to resemble a gold rush, says Wirtschaftswoche. In Munich, Hamburg and Berlin, apartment prices appreciated by 10% last year. Nationwide residential property prices rose by 5%.

So what's going on? One factor is a fear of inflation. Since the years of hyperinflation in the 1920s, "Germans have had a visceral fear of money becoming worthless". Many worry that the European Central Bank's (ECB) liquidity measures could eventually stoke a strong surge in inflation.

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