German property market 'remains strong'

Investors who made money transfers to Germany and purchased property in the country ahead of the credit crisis may be fairing better than those who opted for homes in other areas of Europe.

According to the founder of ProVenture Property Matthew Littlecott, prices in Germany have remained strong throughout the recession.

He noted that many individuals have made a substantial profit when selling on their investments in recent months.

The expert claimed properties are exchanging hands at an uplift of between 30 and 50 per cent since before the credit crisis.

Mr Littlecott commented that the German housing market has "weathered extremely well".

In comparison, many other nations that were displaying strong growth before the recession have suffered significantly over the last five years.

It was suggested Europe has had "a torrid time", with nations in the east including Poland, Bulgaria and the Czech Republic all struggling.

In addition, France, Spain and Ireland have also been among the countries to find their property markets have plummeted as the recession took hold.

However, Mr Littlecott claimed Germany "stands a little bit different to the rest of them".

This was said to be due in part to historical economic events, such as when the property market was reset when the Berlin wall came down in 1989.

Outside of Europe, partner at Emerging Real Estate Tim Morgan recently explained how Berlin is a "prime worldwide property investment spot".

He noted a significant rise in tourism has helped boost the market, as new build homes provide investors with a chance to enter the sector at a low level.

Other benefits said to make Brazil an attractive investment opportunity include the relatively cheap standard of living, the fact people own 100 per cent of their land and property and the fact capital appreciation has risen by more than 20 per cent in some areas.

Posted by Chris Barber

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