Bankruptcy auctions increase again

Bankruptcy auctions increase again
Photo: DPA
The number of forced property auctions rose significantly again this year, according to new figures published Sunday. Experts claim the economic crisis has reached the German real estate market.

According to a report in new magazine Focus, the number of foreclosure sales in the real estate market rose from 55,000 in 2008 to a projected 64,000 in 2009.

The magazine cited statistics from the Unika publishing house, which manages a national archive of foreclosure sales.

“The financial crisis has now reached home-owners,” Unika managing director Peter Küsters said, “If you haven’t got a job, you can’t keep up with your mortgage payments.”

But the magazine also reported that the financial crisis is also encouraging people to invest in German real estate, thanks in part to the increased number of cut-price properties available through bankruptcy. A recent survey found that 55 percent of private investors preferred to put their money in property because of the economic crisis.

Twenty-seven percent even said that they would be ready to invest in a house even after losing another through a bankruptcy auction. The survey covered 300 private investors.

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