The Shocking Truth About The German Real Estate Bubble

Is German real estate in a bubble? 😱
In this episode of The PerFinEx Podcast, we delve into the topic of the German real estate market and debunk the myth of a real estate bubble. Our guest, Diana from Künzel Investments, shares her expertise and insights to shed light on the market's actual situation.

With data and facts as our foundation, we examine why people think the German real estate market is in a bubble. We analyze the 5 stages of an economic bubble, including displacement, boom, euphoria, profit-taking, and the domino effect, to gain a comprehensive understanding.

By considering actual numbers from reputable sources, we discover that the market's recent performance does not indicate a bubble. While there has been a significant increase in average property prices over the past years, it is crucial to contextualize these numbers in relation to other economic factors and global comparisons. We discuss the resilience of the German market, the strict loan standards of banks, and the affordability of properties compared to other countries.

Moreover, we highlight the importance of supply and demand dynamics in the real estate market. With a growing population and a shortage of housing, the demand for properties continues to rise. We explore the need for new construction and the renovation of existing properties to meet the demand, emphasizing the long-term investment potential.

Join us in this insightful discussion that brings clarity to the German real estate market. Whether you are a potential investor or simply interested in understanding the market dynamics, this episode provides valuable insights.

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00:00 Is The German Real Estate Market In A Bubble?
00:54 What Do Diana's Clients Think About The Bubble?
03:26 Why Some People Think German Real Estate Is A Bubble
05:06 Does Diana Think The Bubble Is Bursting Now?
06:42 Why German Real Estate Is No Bubble: Reason 1
09:03 Stage 1 Of A (Real Estate) Bubble
12:27 Stage 2 Of A (Real Estate) Bubble
17:50 Stage 3 Of A (Real Estate) Bubble
19:15 Stage 4 Of A (Real Estate) Bubble
21:43 Stage 5 Of A (Real Estate) Bubble
22:38 Why German Real Estate Is No Bubble: Reason 2
24:51 Is There Still Demand For Properties In Germany?
30:05 How Diana Can Help You Become A Real Estate Investor

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[daisoreanulaurentiu]

Rule number 1: never ask a drug dealer for an advice regarding drugs.
To illustrate it short, after the 2007 bubble, the housing market lagged 2 years behind the SPX.
In that period the housing market dropped 20% on average(not taking into consideration inflation, if we take the average 2%/ year into consideration the depreciation is more like 30%).
The SPX dropped 40% but recovered in half the time.

The SPX top-bottom in recent years registered a 25%, with a downward trend. Considering the upward mentioned, that the housing market is a lagging indicator, until we don’t see an at least 10% drop after inflation adjustment, there is no healthy correction.

[youthculture]

If you want to find property bubbles, look no further than Australia and Canada.