Germany's housing market is red hot - but not a bubble

Berlin

GRIT Hildebrandt finally found her dream house near the German city of Rostock two years ago, paying more than 10 per cent over the asking price to beat the other bidders.

She is now glad that she is on the other side in the country's red-hot housing market. "When you really like a place and there are so few others available, you just have to bite the bullet," the 38-year-old banker said. "It's an absolute seller's market, and they know it."

Germany's residential property market has taken off in the last seven years, with apartment prices in the biggest cities rising more than 60 per cent, according to Deutsc…