Frankfurt In view of the constantly rising prices, there are widespread concerns about a bubble in the real estate market in Germany. It is feared that if it bursts, not only countless Germans, but even the financial sector could plunge into a crisis.
In a recent study, real estate economist Michael Voigtländer from the German Economic Institute (IW) in Cologne has therefore investigated whether the development of lending can still be assessed as appropriate in view of the development of interest rates and real estate prices and to what extent the development and design of the credit products are an occasion deliver for concern.
In the study, the IW emphasizes that the public, but above all central banks and supervisory authorities, have been made aware of the special importance of real estate financing for financial stability at least since the global financial market crisis – which was triggered by a crisis on the US real estate market in 2008.
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