Released on = August 21, 2007, 10:20 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = The German property market is still ripe for the picking,
although the best returns are to be found in areas other than the usual investment
hotspots, investment broker London & Capital has claimed.

Press Release Body = The German property market is still ripe for the picking,
although the best returns are to be found in areas other than the usual investment
hotspots, investment broker London & Capital has claimed.

Most investors in the German market would probably confine themselves to looking at
properties in large population centres such as Berlin or Munich. In fact, London &
Capital spokesman Iain Keyes says that buyers can get \"great off-market yields\" if
they \"look outside the five big cities\".

The recent convergence of the ten-year euro swap rate with prime office yields has
pushed up the cost of borrowing for the purposes of investing in a property.
However, Mr Keyes says that his company\'s German real estate fund \"is still buying
at a margin above interest rates\".

Furthermore, he predicts that the \"general growth\" currently being witnessed in the
German economy \"will run through into rents\".

Rents in Germany - where property ownership is on the whole rather low - are closely
linked to inflation. Analysis of German data in the form of the Consumer Price Index
shows that inflation is up, which means the rental market will benefit.

Not everybody is advising investors to look outside the big five cities however.
Real estate agents Feri Rating & Research are predicting that average rents in
Berlin, Düsseldorf, Frankfurt, Hamburg and Munich are likely to go up by nearly nine
per cent over the next decade.

And the smaller cities of Dresden, Heidelberg, Leipzig, Munster and Wiesbaden are
going to see growth in excess of that seen in the major cities, spokesman Wolfgang
Kubatzki has declared. He expects German rental growth on the whole to increase at a
rate higher than the European average.

In the past ten years, average household incomes have gone up by ten per cent, while
rents have remained fairly steady. Mr Kubatzki sees this as a sign that rental
growth is going to be pronounced over the next decade.

In addition, a shortage of housing supply has prompted major construction projects
in areas such as Munich and he predicts that \"the bottleneck to be expected for the
housing supply in the growth centres will cause the level of realisable rent rates
to rise\".

In Berlin, rental figures are exceptionally high and expected to rise. As much as 85
per cent of the property in some areas is rented and according to Paul Collins,
property editor at Buy Association, it offers \"very reasonable property prices\".


Web Site = http://germany.assetz.co.uk/

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0161 456
4000, linkexchangeseo@gmail.com