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Germany favoured over medium term

Catherine Deshayes

Germany, together with other less risky property markets, is best positioned to deliver attractive risk-adjusted performance over the medium term as investors re-assess their attitudes towards property pricing and risk, according to the latest research published by Invista REIM...

The report, which provides a reassessment of risk-adjusted performance prospects over the next five years, shows that property investors are urged to look beyond volatile short term data and take a medium term view of market performance.

Invista favours markets such as Germany, Italy, Benelux and France, in which diversified investment opportunities remain and where returns can be enhanced over the medium term through active asset management.

By contrast, small, less liquid property markets, such as Portugal and Hungary, with higher levels of expected pricing volatility, fell in the rankings, as did previous economic outperformers including Spain and Ireland, which are expected to experience an exaggerated slowdown in economic growth over the next five years.

Changes to the ranking since 2007 reflect higher economic and capital markets related risk created by the global credit crunch.

Tim Francis, Had of Continental European Research at Invista, said, "The global economic events of the last 12 months have forced investors to reassess their attitudes towards property risk and pricing.

"Despite recent weak economic data, we believe the German property market should consolidate its position as a key investment target for diversified investors."

TheMoveChannel.com has a 377,688 square metre mixed use building, containing office and production space, for sale in the city of Ingolstadt in the Free State of Bavaria, Germany.

It is located along the banks of the Danube River, in the centre of Bavaria. As of December 31st, 2005, Ingolstadt had 121,801 residents, making it the second-largest city in Upper Bavaria, after Munich.

The headquarters of the German automobile manufacturer Audi are located in Ingolstadt, including well known electronic stores Media Markt and Saturn. Ingolstadt station has been connected to Nuremberg by a high-speed rail link since May 2006.

The premises have an electric company and a car repair company as tenants, and the tenancy agreement run time is until 2017. There are 28 parking spaces, and the yield is 7.6 per cent, whilst the net rent income total is £184,500. The purchase price is £2.47 million Net.

Source: www.propertyeu.info