Turnovers on the German real estate market decreased on average by 15% in the first six months of 2000, according to real estate trade organisation Aufina. This was in contrast to forecasts by analysts.
The trend was worst in former east Germany, where turnovers were down by up to 37%, while the average drop in former West Germany was 8.6%.
A spokesman for Aufina said that the problems were caused mainly by the increase in popularity of stocks and investment funds due to the imminent tax reforms, causing private investors and venture capitalists to shift their attention away from the real estate market.
Frankfurter Allgemeine Zeitung, 10 November 2000 p55
