Germany Property Investment News

Real estate investment into Germany up in 2007

As Jones Lang LaSalle releases its figures for direct real estate investment in Europe for the first six months of 2007, Germany emerges as one of the strongest EU members in this field. It received the largest share of investment on the continent and demonstrated a 25% growth on investment received during the whole of 2005.

Jones Lang LaSalle has revealed that direct real estate investment in Europe as a whole for the first half of the year totalled €120.7 billion, a growth of 9% on the same period of the previous year. Although Germany came second to the UK (out of European countries) in the amount of investment received, the growth seen by the UK was slight, at just 4% on the previous year. Germany received a total investment of €26.6 billion, which equates to a quarter of all direct real estate investment received in Europe.

France has also enjoyed a strong first half of the year, receiving €15 billion in investment – 15% of Europe’s total investment and an increase of 6% on its figure for the whole of 2005. This year is also proving to be a good one for countries in Central and Eastern Europe, with increase in volumes seen in Bulgaria, Romania, Turkey, the Czech Republic and the Ukraine. Countries that received a lower level of investment include Sweden and Norway, which is thought to be a result of high interest rates deterring potential investors.

Tony Horrell, the CEO of European Capital Markets at Jones Lang LaSalle, commented on the growth so far this year, attributing rising investment volumes to “positive rental growth and good occupier demand”. He also drew attention to the “two-speed market” which is emerging in Europe, as investment activity in the UK is seen to be slower than on the continent.