Germany: euro property ‘powerhouse’?

Germany is apparently immune to the effects of the global credit crunch…

According to Mark Bingham Managing Director of Owner Invest, Germany has managed to avoid the dreaded credit crunch and is set to become the ‘property powerhouse’ of Europe. He explained: “Germany has long been admired, especially in light of its 1990 reunification which many thought would be the undoing of this sleeping giant.

“If anything, the complete opposite was true and we saw a united Germany battle the odds to become a major European player. However such was the success of its financial turn around that many predicted that the property market was destined for great things some years ago.

“This was not meant to be and Germany has had to bide its time. Now, unaffected by the credit crunch and enjoying financial stability it is angling for pole position in the European arena.

Investor friendly mortgages

Mr Bingham continued: “The proof of Germany’s future prosperity is twofold; firstly there is the fact that many private equity funds have invested billions into the German property market. This is a strong indication that the market will rise significantly in the coming years.

“Secondly the German banks have now started to introduce investor friendly mortgages which will undoubtedly help shift the percentages on owner occupation and rental.

“The position that Germany now finds itself in is not dissimilar to the UK market of the 1990’s, when the UK experienced a surge of investors buying up cheaply priced properties in order to re present them to the rental market. The UK market flourished as a result. Germany is undoubtedly the number one European country to watch.”