German Property to Attract 50 Billion Euros of Foreign Investment
A report by PricewaterhouseCoopers LLP has predicted that foreign investors are set to spend around 50 billion Euros on German residential and commercial real estate within the next two years.
Key German cities (Berlin, Frankfurt, Munich and Hamburg among them) will be targeted by companies such as GE Real Estate, an arm of General Electric Co., the world’s second-biggest company. Companies are drawn to invest in Europe’s largest economy due to the fact that yields are higher and rents are lower than the European average. Analysts predict that rents will continue to rise and that vacancy rates will fall in many of Germany’s principal cities.
General Electric Co. plans to double its assets in the German real estate market to 2.3 billion Euros by 2008 in a bid to profit from the rising rents and prices. The GE Real Estate arm currently has 54 billion US Dollars in assets and operations throughout 24 countries worldwide.
The growth of the German market is largely driven by the influx of foreign capital; PricewaterhouseCoopers reports that foreign companies invested more than 41 billion Euros in German property in the last two years. It is also thanks to a strong economy and relatively low borrowing costs. The German government raised its forecast for economic growth for 2007 from 1.4 per cent to 1.7 per cent.
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Key German cities (Berlin, Frankfurt, Munich and Hamburg among them) will be targeted by companies such as GE Real Estate, an arm of General Electric Co., the world’s second-biggest company. Companies are drawn to invest in Europe’s largest economy due to the fact that yields are higher and rents are lower than the European average. Analysts predict that rents will continue to rise and that vacancy rates will fall in many of Germany’s principal cities.
General Electric Co. plans to double its assets in the German real estate market to 2.3 billion Euros by 2008 in a bid to profit from the rising rents and prices. The GE Real Estate arm currently has 54 billion US Dollars in assets and operations throughout 24 countries worldwide.
The growth of the German market is largely driven by the influx of foreign capital; PricewaterhouseCoopers reports that foreign companies invested more than 41 billion Euros in German property in the last two years. It is also thanks to a strong economy and relatively low borrowing costs. The German government raised its forecast for economic growth for 2007 from 1.4 per cent to 1.7 per cent.
If you wish to see the original article please click here
posted by Obelisk International at 5:48 pm
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