BERLIN, Dec. 22 (Xinhua) -- Residential property prices in Germany in the third quarter (Q3) rose by an average of 12 percent year-on-year, hitting a record high since 2000, according to preliminary figures published by the Federal Statistical Office (Destatis) on Wednesday.
Particularly strong price increases were observed in Germany's seven largest cities Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Duesseldorf as well as in sparsely populated rural districts, Destatis noted.
Prices of residential properties in Germany's top 7 cities in the third quarter rose by 14.5 percent compared to last year's same period. At the same time, prices in sparsely populated rural counties were up 15.5 percent for single- and two-family homes and 11.2 percent for condominiums.
Low interest rates, a tight housing market, a lack of investment alternatives, in particular for large investors, as well as a robust economy have long driven the real estate boom in Germany. With the COVID-19 crisis and the trend toward working from home, real estate in rural areas is also increasingly in demand.
Germany's new government plans to lower the hurdles to acquiring property, such as by requiring less equity through loans. "We want to enable more people in Germany to live in owner-occupied property," said the coalition agreement. Enditem