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The expansion of the European population has been decreasing for some time now. It is expected that population growth in Germany will also continue to decrease and, in addition, the population will age. However, the demand for houses is not only determined by the size and growth of the population, but mainly by the increase of the number of households. Because of the expected decline of the average size of the households, the number of households will continue to rise in the future, despite the decrease of the population. Because of this, it is expected that the total demand for houses in Germany will also continue to grow. Especially the number of one to two person households will increase, which is expected to have a positive influence on the demand for small(er) apartments. House prices in Germany have stayed level in the past few years. This sharply contrasts with the other countries in the European Union where, as a result of the sharp interest decreases, credit expansions and purchasing power rises, house prices, with almost no exception, doubled. The German housing market is an interesting real estate investors’ market in Europe, since the prices are at an historically low level. There is almost no other country in Europe where the housing market is as cheap as in Germany, according to the affordability index. The relatively limited risks of the German housing market as a result of the low prices and the increasing demand for houses combined with the chances of an increase of the prices as a result of an acceleration of the economic growth, makes an investment in this market attractive. Cygnus Real Estate B.V. believes in a German market, and employs its high-quality network in that country in order to buy attractive real estate for its participants. |
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