I am therefore pleased to have this opportunity to explain the Bundesbank’s perspective on the German real estate market. Let us begin by taking a look at the economic situation in general – after all, economic conditions impact strongly on the real estate markets. 2. German economy in good shape  The German economic situation is not as bad as some might think.
HICP inflation is expected to remain above levels consistent with the ECB’s quantitative definition of price stability for a rather protracted period of time, and to moderate only in the course of next year.