How to use concrete gold to protect yourself from inflation

Dusseldorf Now there’s inflation too: Since consumer prices have risen more sharply than they have been in decades, it’s no longer just the low interest rate that speaks in favor of buying a house. Unlike the savings book, many are convinced that property such as one’s own house or apartment protect against the negative consequences of inflation. A current representative survey by the German Institute for Asset Creation and Old Age Insurance (DIVA) showed: 36.5 percent of citizens consider real estate to be the right way to protect themselves against inflation.

At first glance a convincing assumption: after all, the rise in residential property prices in recent years has far exceeded the rate of inflation. While condominiums and one and two-family houses rose by around 65 percent between 2010 and 2020, according to the Federal Statistical Office, consumer prices rose by a mere 13.5 percent in the same period.