Foreign investors are once again making their mark in Germany
While many German investors are still waiting to see what happens, the market is seeing growing activity from international investors. Continental Europeans in particular favor Germany because of its robust economic indicators and comparatively low national debt – factors that offer stable conditions for long-term commitments.
Two contrasting asset classes are in demand: firstly, classic core real estate with reliable cash flow in the residential and office segments, and secondly, properties in financial distress which, despite their greater complexity, can be acquired at bargain prices and thus promise above-average returns.
The strong influx of French capital is noteworthy. Industry observers attribute this to political uncertainties and obstacles to reform in France, among other factors, which make investments across the border appear more attractive. Anglo-Saxon investors, on the other hand, remain cautious: they still consider the return expectations of many sellers to be too ambitious.
J. Thomsen advises German investors not to miss the current entry point. Asking prices are now approaching market levels, while domestic competition is unusually weak. This could further boost foreign buyers – and quickly reduce the opportunity for attractive deals.
Read the full article (in German): “Core and bargains” onf The Property Post.