German investors expect deals to recover in 2010

Two thirds of the real estate investors polled for the Estavis Investment Barometer expect the transaction market in Germany to recover by 2010. Consultancy Estavis said 16% believe the transaction market will not revive until 2011 at the earliest. Just 2% think that the market can get back on its feet before the end of this year.

Estavis conducted its survey among 44 investors. The majority of the respondents were German institutional investors such as insurance companies and pension funds, but investors from the US, UK and Scandinavia also took part.

The survey found that just under 40% of the institutional investors polled plan to raise their real estate quota in Germany this year, while 57% plan to maintain their current scope of investments. Less than 5% plan to cut their real estate quotas.

'During our previous survey, just before the Lehman bankruptcy, as many as 25% of the polled investors had voiced their intention to reduce their real estate quota in Germany; at present, that figure is down to 4%,' said Rainer Schorr, CEO of Estavis. He went on to say that institutional investors from Germany, including insurance companies and pension funds, have shown a particular interest in real estate.