Property sales in Germany increase

Wednesday 18th January 2012

Home sales in Germany rose by 22% in 2011 compared to the preceding year, with sales revenue of £8.6bn (€10.4bn) according to the German Real Estate Association (IVD).

The German property market, supported by cheap property prices and high rental rates, is attracting a growing number of property investors seeking high rental returns and potential room for capital appreciation. There is a huge rental market because Germans, in general, tend to rent rather than buy a home.

Jürgen Michael Schick, vice president of IVD, remarked: "The turmoil in the capital markets has shifted demand toward real estate, leading both private and institutional investors to invest more in the property market.”

Berlin, Munich and Hamburg attracted the greatest level of capital from property investors.

Schick added: “Medium-sized properties located in residential areas are currently experiencing a significant excess in demand, which could potentially lead to further price increases."