Berlin has emerged as the frothiest property market in the world, with the city engulfed by expensive highrise developments and speculative buying that threatens its traditionally low rents and hip arts scene. Prices in Berlin jumped by 20.5% in 2017, according to the property consultancy Knight Frank, with other German cities also displacing cities in China in terms of rising prices. Berlin, Hamburg, Munich and Frankfurt were ranked in the top 10 in the world for price rises, with several Dutch cities not far behind. Berlin’s move to the top of risers followers several years of soaring prices; the average property price has increase by more than 120% since 2004. In February, Germany’s central bank, the Bundesbank, suggested that property in many German cities was at least 15% overpriced and could be as much as 35% overpriced in Berlin.

Source: The Guardian April 10, 2018 16:41 UTC