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The effect of the European Central Bank's monetary policy on the real estate market in Germany

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The effect of the European Central Bank's monetary policy on the real estate market in Germany

4.85 58,633 ratings · 4,420 reviews
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Overview: Seminar paper from the year 2021 in the subject Business economics - Investment and Finance, grade: 1,3, University of applied sciences Frankfurt a. M., course: Economic Policy, language: English, abstract: This paper analyses the European monetary policy and its effects on the real estate market. The prices for real estate in Germany are continuously rising at a steady level. High sought-after cities are not only affected by the positive price trend, but far beyond that also less sought-after regions. On the other hand, the European Central Bank has been pursuing a policy of low-interest rates for years, which has been extended by various purchase programmes, especially since the financial crisis and during the current pandemic. A connection between monetary policy and the development of real estate prices can be deduced. Many interest-bearing savings products are expiring, and the low- interest rates make a new investment less attractive. Besides, Germans do not like shares or bond as an investment, the demand for flats and houses, which are seen as supposedly safe investments, has increased. The past has shown how quickly an overheated real estate market can lead to price bubbles and severely shake financial stability.

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Anonymous is the author of several novels. Originally from the East Coast, they now live in the Midwest with family. In addition to writing, Anonymous enjoys gardening, cooking, and reading way past bedtime. Their work often explores the complexities of everyday life and human relationships.

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I was completely blown away. The author orchestrated a breathtaking finale. Truly a work of art. An absolute must-read for connoisseurs of the genre.
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Masterpiece from start to finish. The author orchestrated a breathtaking finale. Truly a work of art. I will undoubtedly revisit this masterpiece.
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