German market to strengthen

News on Germany

Germany’s property market looks set to strengthen on the back of falling unemployment figures, according to a fresh report.

The German Institute for the Study of Labour (IZA), and the German press, report that unemployment figures in Germany are expected to drop below three million for the first time since 1992, primarily due to the labour reforms over the past years finally bearing fruit. This trend is having a positive impact on the German economy as a whole.

The IZA report claims: "With less unemployment there will be less welfare payments, a higher tax take and thus higher revenue available for government expenditure.

This combined with the relaxation of the immigration policies means bluntly that there is a required demand for both residential space and commercial space, currently not being met by new constructions."

"With the large majority of Germany property being cheaper to buy rather than build, and a staunch limit of city centre availability due to high population densities and a lack of available space, there will be a higher demand for well located properties whether residential, retail or commercial."

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Information provided by Homes Overseas | © PropertyIndex.com 2008 | Last Updated: 16 October 2008