Germany Cited As Most Attractive Country For Real-estate Investment Recognition
Germany has been recognized as Europe's most appealing country for real estate investment. According to a survey of global real-estate investors from property-broker CBRE, Germany ended the two-year British reign over the recognition. This has been viewed as the latest clue that the U.K. real estate market is starting to fall.
About 17 percent of investors chose Germany as the top country for investing in the region. Around 15 percent voted for the U.K., which garnered 31 percent last year. The shift is the result of weaker economic growth in the U.K., Britain's upcoming vote in the European Union and consecutive years of booming property values.
Germany won the top place in part because investors have started looking more widely across the region. The rise in attention towards central and Eastern Europe had been increasing. According to a report from Nasdaq, investors always search for new yield may be part of the explanation.
London still remains as the most attractive city for real-estate investment. However, this year only 15 percent of investors put the U.K. capital on top of their lists, which is half from 2015. Last week, Deutsche Bank AG warned that central London was at risk of a price correction.
According to a report from The Wallstreet Journal, The drop in sentiment has been the result years of soaring demand for U.K. property, which has led the global real-estate boom. The region has been seen as a safe-haven from financial issues, while returns remain attractive compared with other assets.
London rose to the top of wish lists during the boom as economic recovery began. For investors from the Mideast and Asia, central London was a first port of call. In 2015, U.K. real-estate investment volumes reached $93.11 billion, according to Real Capital Analytics. London accounted for about half of that figure.
Germany now takes the lead as the pace of investments has turned sluggish in the second half of last year, dropping 18 percent from the same time in 2014.