Faced with tight supply and strong demand in bigger cities, investors are looking to Germany’s wealthy regions for value, PropertyEU's Germany Investment Briefing in September was told.
Faced with tight supply and strong demand in bigger cities, investors are looking to Germany’s wealthy regions for value, PropertyEU's Germany Investment Briefing in September was told.
Andrew Allen of Aberdeen Asset Management put it succinctly at PropertyEU’s Germany Investment Briefing in September when he said: ‘The phrase we use is “don’t fear the second tier”.’ It was a sentiment that resounded across the panel. With supply tight, value limited and a swell of overseas capital pouring into the ‘big seven’ cities, investors are moving to Germany’s wealthy regions and even third-tier destinations.
‘The best returns in Germany are in B locations if you use your market knowledge,’ said Thomas Dörschel, investment director at Colliers International. His advice to investors was: ‘Invest into the best locations in office, residential or retail or enter into the early stages of development.’
The full report on the briefing appears in the October edition of PropertyEU Magazine. Subscribers can also read the article online.
