Brexit is pushing up house prices in Frankfurt as buyers expect wealthy professionals to move there from London, according to research by Deutsche Bank AG.
“Impetus from the Brexit vote caused prices to surge in 2016,” the report published yesterday said. “Probably in anticipation of wealthy London bankers moving to the city, prices for family homes rose particularly sharply.”
Frankfurt, an established financial capital at the heart of Europe’s biggest economy, has been touted as a potential beneficiary of Brexit as financial institutions consider shifting operations out of London to retain European market access. The city is home to the European Central Bank and hopes to become the new headquarters of the European Banking Authority, the regulator currently based in the UK capital.
Prices for family homes in Frankfurt are up 11.75 percent year-on-year, compared to a 6 percent increase across the country’s other major cities, the report said.
“Because of the high level of migration to Frankfurt, rents and prices are expected to continue to rise rapidly over the coming years,” the report said.
Germany´s housing market price rises have been accelerating for several months. In a country where the housing market has historically been extraordinarily stable, this is a significant shift.
