German housing booms as 2011 investment figures pass last year’s already

The German residential market is booming and investment volumes in the first six months of 2011 equalled the total amount spent in the full 12 months of 2010.

The purchase price of freehold flats in particular rose substantially in the first half of 2010. In a year-on-year comparison, purchase prices in Munich and Hamburg grew by more than 10 %.


“Increases were also registered in Berlin, Frankfurt and Düsseldorf of more than 5 %,” the German agency Patrizia Immobilien told OPP this week.

“Price increases in Stuttgart and Cologne, however, appear to have stopped for the time being, with the development of prices still remaining under the inflation rate,” the company added.

Leipzig comes out as Germany’s cheapest city on the home front and, says Patrizia, “it is the only city of the eight reviewed that recorded a slight drop in purchase prices in a year-on-year comparison.”

Germany sets aside $130 billion for renewable energy

German Chancellor Angela Merkel announced on 30 May that Germany, the world’s fourth-largest economy and Europe’s biggest, would shutter all of its 17 nuclear power plants between 2015 and 2022, an extraordinary commitment, given that they currently produce about 28 percent of the country’s electricity.

Underlining the government’s seriousness in changing the country’s energy matrix, Germany’s Kreditanstalt fur Wiederaufbau (German Development Bank) is to underwrite renewable energy and energy efficiency investments in Germany with $137.3 billion over the next five years, Germany Trade and Invest reported. Overall, the German government’s 6th Energy Research Program has made an extraordinary $274.6 billion available for joint funding initiatives in energy storage research over the next three years.

It is by any yardstick an extraordinary (and expensive) commitment that may well have the collateral benefit of unlocking similar funding worldwide for renewable energy projects. (more)

 

Look how much roof there is! “Further to this as there is a large roof space on this property it is possible to increase rental income by renting the roofs for generating solar electricity. This would add a further €50,000 annually in rent giving a final yield of 31.9%” (more)

 

Mood among investors remains buoyant in Germany

Interest in German commercial real estate remains high among both German and international investors. “Total transaction volume up to the end of the third quarter came to just under 16.8 billion euros, more than 27 percent above the previous year’s result,” says Andreas Trumpp, Head of Research at Colliers International in Germany. “The quarterly results have been very balanced thus far, fluctuating between 5.4 and 5.7 billion euros,” he adds. About 31% of the transaction volume registered between January and September (€ 5.2 billion) came from portfolio sales. International investors invested some €6.6 billion in Germany during this period, making them responsible for about 40% of the investment volume. Approximately €7.0 billion, or about 42% of the transaction volume, was registered in the country’s six top locations: Berlin, Düsseldorf, Frankfurt, Hamburg, Munich, and Stuttgart.(more)

Germany gains buyers’ trust

Germany is earning property buyers’ trust, this month’s Top of the Props report from TheMoveChannel.com suggests. Germany has entered the top ten most popular property destinations for the first time ever, as the country offers a reassuringly stable market for investors. Germany jumped four places in the overseas property portal’s rankings to take the tenth spot, joining the familiar faces of Spain, France, Portugal and the USA.

Germany accounted for 2.19 per cent of all enquiries received by TheMoveChannel.com in September, replacing the small island of Cape Verde, which dropped 12 places after its surprise entry into the top ten last month. Unlike the short-term surge of interest in Cape Verde’s smaller economy, the popularity of German property has been growing for some time.

An established member of the Eurozone, Germany has been consistently drawing more enquiries from investors for three months in a row, rising seven places in TheMoveChannel.com’s chart since July. (more)

Berlin, Europe’s most desirable city for tourism and air transport

BERLIN (eTN) – In a European continent stroked by gloomy economic perspectives, Berlin seems to be an oasis of optimism fueled by economic growth. Tourism is especially booming in the German capital. At the World Routes conference, an event hosted earlier this week in Berlin where airports and airlines meet together, Visit Berlin Tourism CEO Burkhard Kieker highlighted the fact that the German capital is now Europe’s third most-visited city with over 20 million tourists a year. “This is even more incredible when we think back to the position we had two decades ago. We took over last year Rome and are just behind London and Paris now,” he explained.

Signs of Berlin’s vitality are not only to be observed in the number of tourists strolling in the city center but also in the number of construction projects which are to be seen all over the capital. Among the most impressive ones is an €800 million large project in the City West. Previously the heart of West Berlin, the area which stretches between the famous Kurfürstendamm boulevard, the train station “Zoologischer Garten” and the Kaiser Wilhelm Memorial Church, has been neglected over the last two decades as investors mostly turned their eye to the Eastern side of the reunified capital. (more)