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In Berlin, rents lag even further behind[0]: Rents in Vancouver are 60% higher than Berlin, where as purchase prices are only ("only") 35% higher (net income i

• kspaans 11y ago
  I've heard elsewhere that the reason for that pricing in Berlin (and/or Germany) is there a combination of policy and culture that makes houses unsuitable as investment vehicles. I forget what the exact mechanics are, but basically housing prices don't increase and no one expects them to. So there is almost no speculation in house prices: people buy houses if 1) they want to live there long term, or 2) they want to be landlords.
  • ido 11y ago
    But this would suggest the opposite of reality - that rents increase faster than house prices. In this case German house prices are relatively high & rising faster, when compared to rents. In Berlin in particular purchase prices have increased by 8-10% per year in recent years where as rent prices have only increased by 3-5% per year (both are still cheap compared to Vancouver).