März 16th, 2016

Property Investors look to Germany – Central & Eastern Europe

„Property investors are shifting focus – from mature western European markets, where the froth is coming off, to central and eastern Europe“ …so starts an excellent article in today’s Irish Times by Justin Comiskey http://www.irishtimes.com/business/commercial-property/european-property-investors-shift-to-the-east-1.2574127

The article, quoting sources from the ‚CBRE Investor Intentions Survey 2016‘, mentions that both the Netherlands and Germany seem to be of the most interest for international property investors in Europe in 2016. CBRE Group, Inc. is the world’s largest commercial real estate services and investment firm, and serves real estate owners, investors and occupiers worldwide.

Foreigners are finding out what Germans have known for some time, namely that property values are still a very good buy in comparison to other EU countries. And this even in Germany’s increasingly active domestic real estate market where prices have doubling in the last few years, and buyers are sometimes purchasing properties without even have seen them. And banks are making these purchases even easier.

Germany remains the most popular property market

Of all the countries in Central and Eastern Europe, Germany remains the most popular property market, even passing the UK, which has been Europe’s top destination for property investment the article noted.

There are ‘Brexit’ fears and slowing UK economic growth which have negatively affected property investors perceptions.

Investors Prefer Berlin over Munich

The article mentions 3 German cities – Berlin, Munich and Hamburg –  but notes that investors are highlighting Berlin over Munich as their preferred investment German city.

We have written on this blog some months ago about increasing interest from Chinese investors in Germany and Berlin. ‚China’s Real Estate investors and Germany‘  https://www.next-estate.de/blog/2016/02/04/558/