Investors eye ‘bargain bavaria’

Investors looking for property bargains have been urged to consider Bavaria...

A new survey has ranked Munich as one of the top places to invest in during 2009, despite its prospects actually weakening compared to a year earlier. Respondents to the Emerging Trends in Real Estate Europe poll conducted by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) placed the German metropolis as the top investment hotspot for the year ahead.

Those questioned stated that increases in spending power combined with a falling unemployment rate and a growing population spell good news for Munich. Furthermore, economic growth in the city could be boosted by an increase in government spending, the survey suggested.

Also, flights to Munich are possible from a number of locations in the UK. Connections can be made from London Heathrow Airport, London City, London Gatwick, Birmingham International, Edinburgh and Manchester.

Low risk perception

And it is not just Munich that offers investment opportunities, according to the report, due to the low risk perception investors have of Germany on the whole. Munich topped the European City Risk league table, but Hamburg, Frankfurt and Berlin all featured in the top ten and could represent possible investment options for the year ahead.

However, investors were cautioned by John Forbes, PwC's real estate leader in Europe, the Middle East and Africa. "This is going to be a tough year for many investors. For those who bought at the top of the market it could be a struggle for survival, particularly if banks become more aggressive in dealing with covenant breaches. On the other hand for those with equity to invest, there will be opportunities as the banks start to take action," Mr Forbes added.

This sentiment was echoed by president of ULI Europe, the Middle East, Africa and India William Kistler. "With interest rates low and the market generally not overdeveloped, there are bargains available for those who are in a position to buy," he commented.

Source: www.Assetz.co.uk