The effect of the European Central Bank's monetary policy on the real estate market in Germany

The paper explores the impact of European monetary policy on the real estate market, particularly in Germany, where property prices are steadily rising across both popular and less sought-after regions. It highlights the European Central Bank's long-standing low-interest rate policy and its purchase programs, initiated during the financial crisis and pandemic, which have influenced investment choices. The analysis suggests a correlation between monetary policy and real estate price trends, noting the risks of an overheated market potentially leading to financial instability.