Market positions are not generally set in stone. The market players are continuously reassessing the underlying conditions for new financial centres, yet those which can offer the following features stand a good chance of being successful: Openness and economic strength A look back at economic history shows that there is a strong correlation between fewer trade barriers and greater prosperity.
The real estate market is crucially important for the German economy as a whole: loans for house purchase account for more than half of lending to households and enterprises. Our assessment of developments in the residential real estate market from a financial stability perspective is based on three indicators: Housing prices are continuing to increase dynamically.