Is the German property market a bet on European Union success?

[nmb]

If you believe that the European Union will ultimately be a success is it time to start picking up German property assets? It seems fairly obvious that Germany, being the leading light in Europe, has potentially most to gain if the European Union survives the current wobble and is ultimately successful. Is it time to take another look at the German property market?

 

[PostBrexitInvestor]

Post Brexit it will be interesting to see how the German property market performs. Rumours of financial problems in Germany must surely be wide of the mark, if Germany goes down then the rest of the European Union is finished.

 

[lookinginvest]

I totally agree, if the German property market was to collapse then the rest of the European property market would have fallen beforehand. However, I believe that Germany is strong enough to pull the European Union through this difficult patch although it would have been much easier with the UK as a strong financial supportive partner.

 

[Veronica]

I have German relatives and when I talk to them it is clear that there is a lot of unease among German people who are fed up with the EU and are starting to think along the lines of Germany leaving the union. Personally I think it is only a matter of time before the EU collapses completely

 

[lookinginvest]

If Germany decides to pull out of the European Union then quite simply that is the end of the project. The forthcoming UK exit from the European Union is damaging but in isolation not a killer blow.

 

[Veronica]

I agree but the German people are fed up and as you say if Germany pulls out then it is the end of the EU. Better for the UK then to be out of it before that happens.

 

[nmb]

I appreciate there will be difficulties when the UK eventually pulls out of the European Union but why would the European Union not want to trade with the UK when the UK buys far more goods from Europe than Europe buys from the UK. Surely there are more European jobs at risk than UK jobs?

 

[diyhelp]

As the UK nears the conclusions of what many believe will be a very messy divorce from the EU, does Germany stand to gain the most from an economic standoint? If so this will surely create opportunities in the German real estate market?

On the flipside, there is growing resistance to Germany taking in any more immigrants when other EU memebrs seem reluctant to do so. Will we see a change in the princple of Free Moverment within the EU? If so, would the UK we welcomed back with open arms thereby rebalancing the power within the EU? There is a lot to consider but either way Germany will still be the leading light within the EU.

 

[John62]

Summarizing the last 2.5 years (since this post was made) we can say that German property market increased strongly. Sure, EU still have challenges, but only in the last year the rents in big German cities almost doubled.

 

[Longterminvestor]

There are concerns that the German economy will suffer when the UK leaves the EU and the impact a no deal Brexit would have on the German car market. I also see that the German economy has been weakening of late - will the property markets slow down after a good couple of years?

 

[John62]

Good question. I assume it will, because this slope is way too big. The growth is limited and sooner or later it will slow down. The question is if it is like a bubble which bursts or stagnating at one point?

 

[FWL]

I prefer a slow bubble deflation as opposed to the boom and bust we have seen in years gone by. Boom and busts always go too far on the downside and the upside. A gradual devaluation feels more controlled if that makes sense - more thought out.