UK investors are looking towards the German property market, according to Deutsche Bank. Tim Rooney...
UK investors are looking towards the German property market, according to Deutsche Bank.
Tim Rooney, managing direc-tor of global mortgages at Deutsche Bank, claimed the lender was receiving a rise in enquiries from UK investors interested in buying property in Germany.
He said this had coincided with last quarter's fall in unemployment for the first time in around 10 years, stable European Central Bank interest rates and an improvement in the country's economic fortunes.
Rooney said: "The general macroeconomics for Germany are improving month on month, with unemployment now falling for the first time in years and economic growth returning to the economy. The feelgood factor is beginning to return, although wages are still subject to close fiscal control."
He added there was a growing level of interest in property purchases in the former East German cities. "Property in Eastern Germany is poor quality and cheap, with many old-style Communist blocks in need of extensive repair," said Rooney. "One hears of apartments being sold for below €25,000, which should be an indicator of quality and low level of local demand, rather than necessarily a bargain. Berlin is an exception, but Leipzig is interesting investors."
The increasing number of low-cost flights to the area has fuelled a wave of interest among UK buyers. "However, I would recommend caution," Rooney warned.
"Potential investors need to research the market, particularly the rental demand, and choose the area carefully. "
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