Bundesbank: German home prices are overvalued

Note: This section contains information in English only.
Source: Bloomberg
© Scanpix/FP
According to the research of German Bundesbank, the property prices in the country are strongly overvalued, probably by 20%, as the demand for new houses surges on a faster pace than construction. It is said that apartments in Berlin, Frankfurt, Stuttgart, Hamburg and Munich became 25% more expensive since 2010, while one of the reasons of such an increase could be speculation.
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