Spanish real estate investors take refuge in German market

August 26, 2010 at 1:29 pm 1 comment

The German real estate market is characterized by a stability of the prices, inherited from the postwar policies which stipulated that the building of infrastructure for housing is a priority and which guaranteed cheap rentals. Thus, the activity in the German real estate market has been three times slower than in Spain.

As the German had a culture of renting houses and not buying, some German nationals chose to buy vacation homes in Spain, some of the 250.000 new homes built every year.

Germany, on the other hand, operates differently. Houses are built cheap, as the investors want to attract peopleto buy a home, not just to rent it. This situation, along with the burst of the real estate bubble in Spain, have drawn Spanish investors to Deutschland. Also, this year the German economy leads in growth with a reported 2,2% growth, the biggest since 1990.

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P.S Meanwhile, German tourists fall in love with Spain and buy vacation homes in Costa del Sol.


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