Foreign investors to increase exposure to Germany

International investors are planning to increase their level of investment in the German property market despite economic uncertainty and ongoing concerns around the future of the Eurozone, according to the latest research from global built asset consultancy EC Harris.

The study, entitled 'German Real Estate Market Trends: The Investor Perspective', found that investors' appetite to fund property schemes in Germany was higher than anywhere else in Europe, with 70% of investors planning to increase their level of investment in 2012 whilst the other 30% expected their investment to remain the same.

International investors prefer to fund investments in Germany with 59% of respondents optimistic that it would continue to be Europe's strongest and most stable economy over the coming years. This confidence is attributed to proven occupier demand, higher asset values and the secure rates of return that investors perceive within the German market. Several investors (38%) also revealed that they view the German property market as a safe harbour that provides a reliable and steady return, and which enables them to offset some of the risk they take on across their international portfolios.

However, despite this positive sentiment towards the German market, a majority of investors will adopt a largely risk-adverse strategy over the next five years, focusing on investment in 'safe' assets that are high quality, in attractive locations and where there is proven occupier demand.