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During the euro crisis, the popularity of investing in Germany’s real estate has continued to rise. In this year’s trend barometer from Ernst & Young (E&Y), the polled investors said almost unanimously that, in comparison to real estate investments in other areas of Europe, Germany is currently “attractive” or “very attractive.”Last year, 14% still did not hold this opinion. The majority of the investors said they expect rising or stable prices across all segments in prime or near-prime locations, but are more cautious than last year about price development for retail property: at that time, 71% expected prices for top retail real estate to increase; this year, that is down to 46%. For prime office space, price increases are currently foreseen by 27% (2011: 60%) of the investors, while 80% said they believe there will be price declines in peripheral areas—last year, this figure was down to 56%. Overall, however, confidence in retail and residential properties in prime locations significantly exceeds any optimism about other countries. This is reflected in predicted transaction volume: 56% of the respondents said they expect a higher level of sales in Germany—more than in any other European country.

TD News International