In some parts of Germany, buying a home has become more affordable thanks to falling prices and rising incomes. According to the Hamburg Institute of International Economics, the average annuity rate in Germany has fallen by 5.1 percentage points to 19.4%. This shows that more buyers can afford to buy property without overburdening their budget with regular interest and repayments.
In 331 of the 400 cities and districts surveyed, buyers have to spend less than 25 percent of their income on buying a home. Regions such as Greiz in Thuringia as well as Vogtlandkreis and Elbe-Elster in Saxony and Brandenburg, where the proportion of income required to buy a home is particularly low, are particularly favorable.
However, this positive trend contrasts with expensive areas such as Nordfriesland, Munich and Berlin, where buyers have to budget almost half of their income for real estate purchases. Buyers or owners in 30 other regions also had to spend more than 30 percent of their household income on their current loan payment.
© immonewsfeed
