Market: 2007 prices increase 2%
In the current year, the national average for residential buildings will climb 2%, forecasts DZ Bank. According to the institution's appraisal, prices will continue to fall in East Germany, however. The bank criticizes high transaction costs and low flexibility in expediting sales which, in its opinion, hamper the market. Although the investments in residential buildings are increasing, construction activities are still low in comparison to the rest of Europe.