Property prices are used here as a proxy for the health of the economy.
The author may or may not be concerned about the affordability of homes. But that’s a different issue. This is just about absolute prices. And low prices mean low interest in Germany. As the article says, people are interested more in London or Paris.
This leads to fewer investments in the economy and Germany is at risk of falling behind.
If office buildings are in demand in one place but not the other, what could that say about their respective economies (i.e. the companies that would use those office spaces)?
Why is it bad that there are fewer big investors in real estate? Doesn’t it mean that prices should fall and housing should become more affordable?
Property prices are used here as a proxy for the health of the economy.
The author may or may not be concerned about the affordability of homes. But that’s a different issue. This is just about absolute prices. And low prices mean low interest in Germany. As the article says, people are interested more in London or Paris.
This leads to fewer investments in the economy and Germany is at risk of falling behind.
Sorry, I still don’t get it. What does property prices have to do with the health of the economy?
Especially in times where work from home is going strong and massive office buildings are not needed?
If office buildings are in demand in one place but not the other, what could that say about their respective economies (i.e. the companies that would use those office spaces)?