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|15 April, 2019

Property boom boosts Germans' wealth - Bundesbank

European Central Bank's ultra-easy monetary policy helped fuel a German property boom by depressing borrowing costs

The Frankfurt skyline is seen from the meeting room of the European Central Bank (ECB) council meeting room on the 41st floor at the construction site of the new headquarters of the ECB during a guided media tour in Frankfurt, October 31, 2013. The ECB plans to move into its new headquarters by the end of 2014. REUTERS/Kai Pfaffenbach

The Frankfurt skyline is seen from the meeting room of the European Central Bank (ECB) council meeting room on the 41st floor at the construction site of the new headquarters of the ECB during a guided media tour in Frankfurt, October 31, 2013. The ECB plans to move into its new headquarters by the end of 2014. REUTERS/Kai Pfaffenbach

Reuters/Kai Pfaffenbach

FRANKFURT - A boom in property prices is boosting private wealth in Germany but it remains unevenly distributed across the country, a Bundesbank study showed on Monday.

The net wealth of the median German household was 70,800 euros in 2017, a 17 percent increase from the previous survey three years earlier, largely due to a jump in the value of primary residences.

The study illustrates some of the effects of the European Central Bank's ultra-easy monetary policy, which has helped fuel a German property boom by depressing borrowing costs.

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This policy has long been criticised in the country for bringing down yields on fixed-income investments popular with local savers.

But measures of inequality painted a mixed picture: The gap between the richest and poorest quarter of the population widened even as the share of total wealth in the hands of the top 10 percent shrank slightly.

The gap between East and West Germany also remained wide.

(Reporting By Francesco Canepa; Editing by Hugh Lawson) ((@FranCanJourno francesco.canepa@thomsonreuters.com; 004906975651247; Reuters Messaging: francesco.canepa.thomsonreuters.com@reuters.net))