Wednesday, 5 November 2008

More Real Estate Investment in Germany Planned

Thomas Daily reports that according to a poll by Estavis: "Some 50% of the investors questioned would like to augment their real estate investments in Germany during 2008; 25% said they will not change their property exposure. More than two thirds of those polled preferred commercial property and a mere 10% want to invest mainly in residential property. Besides German institutional investors, financiers from the U.S.A., Great Britain and Scandinavia were also questioned. A preference for western Germany for investment was expressed by 100% of the investors; 62% mentioned Berlin, but only 19% considered the rest of eastern Germany. On average, the investors expected at least 6.1% net initial return for core plus objects, 7.5% for value added and 8.6% for opportunistic investments. Increased activity in the property transaction market before the end of the year was anticipated by 24%. The remainder are more cautious: 43% expected no change, 33% feared that market conditions will worsen."

Post a Comment