Germany has emerged as the most attractive real estate market in Europe for 2013, outshining the UK as investors venture back to the continent due to the unlikely break-up of the Eurozone, according to a research survey by CBRE.
The study, which polled 362 investors including managers of some of the world’s biggest funds, showed that 35 percent of respondents picked Germany as the most appealing market compared to 24 percent for the UK.
“While recession is a key concern, investors’ fears of a euro break-up have subsided, and the overall impact of the euro zone crisis on investment activity appears to have eased,” said Peter Damesick, CBRE’s Head of European Research.
London remains the most favoured European city, getting 31 percent of votes, followed by Munich and Berlin.
Dublin in Ireland (6th) and Spain’s Madrid (9th) also made the top 10 favoured cities list, a sign of growing confidence in the recovery of their economies and property markets, noted CBRE.
“The next 12 months could mark the beginning of a reversal of the strong polarisation that has characterised European property investment market over the past two years,” Damesick said.
Meanwhile, US$27.3 billion (S$34.05 billion) worth of commercial properties are expected to enter the European market by 2017 as German open ended funds liquidate, reported DTZ.
As a result, forced sales are expected to hit record levels between 2014 and 2017, boosting available assets especially in Germany and the Netherlands.
Image: Aerial view of Berlin, Germany
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
China property bubble will burst in 2013: analyst
Buyer interest in Thailand luxury homes to continue
Iskandar property prices may surpass Klang Valley