A few years back, the Germany property market used to be very popular with UK investors and helped keep the market momentum moving at a steady pace but after value adjustments in real property portfolios and shifts in the euro/sterling exchange rate, UK investors pulled back. That affected Germany’s housing market and the past few years it has not flourished like it could, just as so many other areas around the world facing economic hardship.
Recently though, UK investors have once again began investing in the Germany market. A recent study by Realogis, which is a leading real estate consulting company in Germany, reports that a good deal of UK investors plan on investing in the German property market within the next three years. Specifically, UK investors have their eyes on the logistics and light industrial sectors. As this occurs, the property market will experience not only growth, but also more stability and value increases will be seen up to the end of this year.
Foreign investors don’t normally just invest in one country, but they like to diversify their investments throughout all of Europe. According to the Realogis study, about 30 percent of investors surveyed stated that they were likely to invest in Germany, 25 percent reported that they were interested in Great Britain,14 percent stated that France was their preferred destination, and 13 percent are targeting Benelux.
UK investors are especially interested in Germany’s retail sector as 40 percent reported that they were planning on investing in that sector within the next three years.
The confidence among those surveyed is quite high that the German market is full of significant growth potential. About 74 percent of those surveyed believe that the market will have substantial growth within the next few years.