July 30, 2016
According to Immobilienscout24, the average loan amount in Germany is €204 560, which is 3% higher than in 2015. According to Ralph Weiz, a specialist in the field of mortgage lending at Immobilienscout24, the end of "the era of zero rates" in the European Central Bank is not yet in sight, so many investors prefer to invest in "bricks and mortar".
With real estate prices growing and the willingness to take on debt grows as well. This is especially true for those buyers who choose real estate in German cities. The cost of square meter there is often much higher than in rural areas.
Munich tops the list of cities with the highest average loan amount (€350 090, 70% above the national average). It is followed by Frankfurt (€299 400), Hamburg (€273 563) Stuttgart (€251 625), Dusseldorf (€250 000). Berlin’s figures (€203 728) are at 0.4% below the average.
Demand for real estate in Germany, according to Weiz, remains high. More and more people want to avoid the lease. However, before getting a mortgage, the borrower must ensure that he has sufficient financial resources. A mortgage will be returned during many years, but unforeseen life circumstances must not jeopardize the payment of monthly contributions.
Based on the materials of opp.today