News Summary: German real estate booms

German real estate booming as people seek safe haven amid financial crisis

Associated Press
News Summary: German real estate booms
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In this photo taken on Thursday, Nov. 1, 2012. General view of central Berlin, Germany. Buying a home in Berlin is widely viewed as one of the safest investments a German, or any European, can make. That is why some real-estate experts are worried the market could get overheated. Home prices in Germany's largest cities are booming. Building permits and home ownership rates are climbing fast. And the percentage of foreigners snapping up second homes in Germany is on the rise. (AP Photo/Markus Schreiber)

BUYING BOOM: Home prices in Germany's largest cities are booming. Building permits and home ownership rates are climbing fast. And the percentage of foreigners snapping up second homes in Germany is on the rise.

CRISIS FALLOUT: The real estate fervor is a consequence of the European debt crisis. Low interest rates have pushed down homebuyers' costs and inflation fears have driven many to real estate as a safe haven for their savings.

NO BUBBLE: Experts downplay the chances of a real-estate bubble like those seen in the U.S., Ireland or Spain. Borrowing in Germany is more heavily regulated.

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