The German economy is likely still growing, albeit more slowly, and the country’s property market is holding up well despite the latest resurgence of the coronavirus pandemic, the Bundesbank said on Monday 26 October.

The German central bank said Europe’s largest economy was slowing but the latest rise in infections was likely to chiefly hurt the hospitality sector. It also noted that the pandemic had hardly affected the property market and this trend could continue as long as the economic hit from the pandemic remains temporary.

“An abrupt correction in property prices is not in the offing as long as there is no severe disruption to the current economic recovery,” Bundesbank said.

In the report, the Bundesbank also published an in-depth study on the country’s real estate market, where residential property prices have risen by 50% since 2010. It concluded that the boom can be explained to a large extent by increased demand in relation to supply.