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Germans flock to property as interest rates fall and rents rise

Growing urban population and unexpectedly high immigration are pushing up housing market

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In the years that followed the fall of the Berlin Wall, property prices in the city were significantly lower than in the likes of London or Paris. But the German capital is no longer a cheap place to live in.

Berlin

UNLIKE his parents who rented their whole life, Berlin resident Sebastian lives in his own apartment and is considering buying a second property in the German capital as an investment to top up his pension one day.

For decades a nation largely of tenants and prudent savers,