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EU crunch time: Your real estate escape routes

Ivan Radford — 26/10/2011 12:07:00

Photo credit: Eisenrah

The world is watching Brussels today, where EU leaders are meeting to discuss the eurozone debt crisis. Disagreements between country leaders have fuelled fears that the crisis will only continue. But as the 27 European Union leaders vote to finalise financial plans this afternoon, careful buyers can still make a sound investment in Europe. It's crunch time for the EU, so where are your real estate escape routes?

France

As countries such as Greece face an uncertain economic future, central eurozone markets (including the UK) remain a safe haven for many. French property, consistently the second most popular on TheMoveChannel.com, continues to attract investors, particularly in the high-end market, where Sotheby's have seen a jump of 38 per cent in luxury homes sold at auction, reports the Guardian. For UK buyers, taxes now apply to UK pension lump sums, but the country's cautious banks have helped France's economy to stay stable amid wider uncertainty.

Germany

Taking a similar approach to France, Germany's careful economy has made it an established market for house hunters with its high yields and low prices appealing to an increasing number of foreign buyers. While central locations, such as Berlin, are seeing house prices increase, real estate across the country has grown in popularity during the eurozone crisis, becoming one of TheMoveChannel.com's top 10 property destinations earlier this month.

Italy

Italy remains one of the main points of discussion in the EU talks. One of the key countries in the eurozone, other leaders are demanding that the country outline firm plans to reduce its large national deficit. While unconfirmed rumours suggest Prime Minister Silvio Berlusconi will resign at the beginning of next year, Italy's climate is still attracting new residents, although an awareness of seasonality is advised by experts. The property market is slow, but PropertyShowrooms.com suggests that this means lifestyle buyers can pick up houses "at bargain prices if they find someone who really needs to sell or move".

Spain

Spain remains the most popular destination on TheMoveChannel.com, and its low costs and sunny coasts have built up a significant expat community. 800,000 Brits are currently living in Spain, according to the Foreign and Commonwealth Office, and although exchange rates are less favourable than a few years ago and a wealth tax has just been introduced, property prices in more popular areas have reduced by up to 50 per cent, say recent reports. These bargain homes have seen foreigners invest €1.3 billion in Spanish real estate in the second quarter of this year, according to the Bank of Spain - an increase of 37 per cent compared to 2010. Buyers afraid of Greece or Italy can still rely on Spain for a second home.

Portugal

Portugal's economy has been badly hit by EU debt, but real estate activity was less negative in September than in August, say the latest figures. It helps that the market has not been crowded by an oversupply of property. Instead, "it is the demand side of the equation that is weighing down on prices in Portugal", according to the Royal Institution of Chartered Surveyors, a finding supported by the differences between regional markets. The Algarve, for example, is faring significantly better than Lisbon and Porto. Overall confidence In Portuguese real estate is low, but prices are too, kept down by the number of repossessed property banks are now putting up for sale.

Bulgaria

Bulgaria has been a surprisingly popular place for property buyers to browse in recent months. A boom in Balkan tourism has seen construction of holiday homes in Bulgarian resorts rise - there are 5.4 per cent more homes across the country now than in 2001 - and EU citizens, attracted by the non-eurozone market, currently account for 23 per cent of all foreign residents, according to a national survey published by BulgarianProperties.com. The latest data from the National Statistical Institute shows that apartment prices are falling in the country's regional cities, but like Portugal, this rate of decline is slowing, as signs of eventual market stability may be starting to show.

Turkey

Eastern Europe has delighted in Turkey, a country that has seen strong economic growth throughout the EU crisis. Investors have rushed to Istanbul for real estate and foreign buyers have poured over $1.3 billion into the country's property market over the years. Although lending growth has slowed since Turkey's phenomenal first quarter in 2011, a strong tourism industry continues to drive investment. "Mortgages represent just 5 per cent of GDP and there is a growing population that aspires to consume," one fund manager told Interactive Investor. Indeed, there is now a shortage of accommodation in Turkey, with a projected demand for 2.9 million houses by 2015. Turkey has been waiting to join the EU for a very long time, but as the leaders meet today to solve the major debt crisis, the EU's refusal to accept Turkey has only helped its property market thrive.

Where is your real estate escape route?

Avoid the EU debt crisis by browsing our listings of apartments, houses and other overseas property both inside and outside of the eurozone:

http://www.themovechannel.com/property/all/

Is now the time to buy property in recession-hit Europe?

admin — 18/10/2011 10:35:00

Image: Flickr
The economic catastrophe that Europe is facing hasn't put a damper on British buyer's enthusiasm to purchase property on the Continent.

According to World First, the expert on currency exchange, holiday home purchase sales in Spain have more than doubled over the summer.

Italy, Greece and Bulgaria are also places of interest to British buyers who are in search of a bargain. However, no matter the location, buyers should heed to the same advice and do your research to avoid any pitfalls.

Mortgage Funding

Due to the effects of the global banking crisis, banks are less apt to lending money, making mortgages more difficult to obtain. Home buyers who need to borrow money from the bank in turn have to place a larger deposit just to get a loan from overseas banks.

The growing debt crisis has intensified in recent months, especially in Greece and Italy and several Greek banks have stopped lending money. Overseas property experts have said that banks are still lending mortgage funds to borrowers even in Greece, however, a deposit of approximately 30 to 40 percent will be required.

Banks in Spain and France are more lenient at present lending borrower's money with only a 15 or 20 percent deposit. However, if the financial crisis takes a turn for the worse, these figures could be tightened.

In Britain, some lenders allow homeowners to refinance their mortgage to fund holiday home purchases abroad however it's based on the individual's criteria. Most borrowers still need to have substantial equity in their British home even after funds have been released in order to qualify. If you haven't got enough equity in your UK property and are not prepared to sell a house to raise the funds then an overseas mortgage may be the best option for most.

Watch Out for Currency Risks:
Buyers need to keep in mind that due to the turbulent economic climate, Euro loans will present a currency risk for many British buyers if they are paid income in sterling.

The majority of overseas mortgages are on variable rates, instead of fixed, so it's imperative buyers are aware that their monthly repayments could go up.

Mortgage rates in Spain and France are frequently between 3 and 4 percent variable, however the rate may fluctuate depending upon the borrower's circumstances.

Planning Problems, Overvaluations and Dodgy Developers:
Numerous British buyers have become unfastened over the years by falling prey to planning restrictions and other laws that were broken unbeknownst to them before the purchase of their dream home.

Getting an accurate property valuation is imperative and in most cases, it's best to get a second opinion. By taking the word of the developer, you leave yourself open to a world of problems that may arise.

If you are purchasing from a developer, do your research. Get them to include a work history of how long they have been in business and past customer reviews. Check out the work that they have performed and see how well it has stood the test of time.

Language Barriers

Language barriers could compromise British buyers, so beware to never sign any contract that may be written in a foreign langue without proper translation. Buyers should make sure there is an accurately translated original foreign contract into the English version.

The Legal Obligations

Research and comprehend what tax, if any will be applied to your purchase and what capital gains tax could be applied on the final price of the home. In most instances, you can figure adding 10 to 15 percent of the purchase price of the property which covers fees for the agents, legal fees and taxes.

Investigate rules and restrictions of letting property if you are planning to have your purchase be used as a holiday let. Certain areas have specific restrictions, so know which rules apply in the area of your newly purchased home.

Find out why an owner is selling and have your lawyer investigate to ensure that all planning, building and habitation licenses are in order. An example of this could be a newly built development may have been repossessed due to licensing not being granted, thus it could not be sold originally.

Finally

Never make a decision in haste. Many buyers have been burned because of their passion for the particular property, or have fallen in love with the neighbourhood and never did adequate research before placing an offer.

Another common mistake happens when buyers are under a specific time limit or are under pressure from an agent or developer and need to make a quick decision.

While there may be some fantastic bargains to be had when it comes to purchasing property, make sure to take your time, do your research and get a legal property expert to inspect all transactions.

If you are thinking of selling a home in the UK then why not try selling with My Online Estate Agent. My Online Estate Agent is a low cost internet based estate agent that charges a fixed upfront fee and no payment on completion.

Top of the Props: Germany earns buyers' trust

Ivan Radford — 05/10/2011 09:23:00

Germany property gains trust in Europe - Top of the Props" />

Photo credit: Kerolic

Germany is earning property buyers’ trust, this month’s Top of the Props report from TheMoveChannel.com suggests. Germany has entered the top ten most popular property destinations for the first time ever, as the country offers a reassuringly stable market for investors.

Germany jumped four places in the overseas property portal’s rankings to take the tenth spot, joining the familiar faces of Spain, France, Portugal and the USA. Germany accounted for 2.19 per cent of all enquiries received by TheMoveChannel.com in September, replacing the small island of Cape Verde, which dropped 12 places after its surprise entry into the top ten last month.

Unlike the short-term surge of interest in Cape Verde’s smaller economy, the popularity of German property has been growing for some time. An established member of the Eurozone, Germany has been consistently drawing more enquiries from investors for three months in a row, rising seven places in TheMoveChannel.com’s chart since July.

Director Dan Johnson comments: “The high yields and low prices have long made German real estate a recognised investment for property buyers, but it seems that the wider climate of uncertainty across Europe is pushing buyers to consider more stable markets, such as Germany.

"Consumer debt is relatively low and the inherently more cautious banks are somewhat less likely to get drawn into the debt crisis than their European counterparts and it's maybe this longer term security that is inspiring confidence in buyers.”

Spain remained the most popular destination for buyers in September, seeing an increase of over 2 per cent in enquiries since August. France is still a firm second favourite, also perceived as a safe place for investment, but Portugal claimed the bronze medal for the first time, attracting more attention than the USA with buyers looking for cheap prices as the market bottoms out.

Berlin Capital Investments explained Germany’s growing appeal: “The property market has shown investors that there is a safe and secure option in Europe. Berlin property prices have grown 7 per cent in the last 12 months and this coupled with a strong demand for high class rental apartments make Berlin a very attractive investment opportunity.”

With interest in Europe’s traditional markets on the up, the newest member of TheMoveChannel.com's top ten is a sign that trust is returning to some areas of the Eurozone.

The full breakdown of the top 40 is as follows:

Overall enquiries for September 2011
Rank	Country	Share	Change
1	Spain	15.71	Non-mover
2	France	9.5	Non-mover
3	Portugal	9.28	Up 1
4	USA	8.21	Down 1
5	Italy	6.56	Non-mover
6	Bulgaria	5.02	Up 2
7	Turkey	4.23	Non-mover
8	Brazil	2.55	Down 2
9	Morocco	2.33	Up 1
10	Germany	2.19	Up 4
11	Cyprus	2.19	Up 1
12	Greece	2.04	Up 3
13	Canada	1.92	Up 8
14	Malta	1.62	Down 1
15	Thailand	1.59	Up 1
16	India	1.55	Up 2
17	Barbados	1.46	Down 6
18	Croatia	1.14	Up 5
19	Egypt	1.06	Up 10
20	Poland	1.03	Down 3
21	Cape Verde	1.02	Down 12
22	Cayman Islands	0.98	Down 2
23	Hungary	0.91	Up 4
24	Australia	0.66	Up 13
25	Slovenia	0.6	Down 3
26	St Lucia	0.59	Up 7
27	Switzerland	0.57	Down 3
28	UAE	0.57	Down 9
29	Montenegro	0.52	Down 1
30	Indonesia	0.42	Down 4
31	Jamaica	0.32	Down 1
32	South Africa	0.27	Up 16
33	Panama	0.26	Up 1
34	Romania	0.21	Up 4
35	Albania	0.17	Up 7
36	Austria	0.16	Non-mover
37	Cambodia	0.14
38	Czech Republic	0.12	Up 6
39	Philippines	0.11	Down 8
40	Mexico	0.09	Down 15

Thinking of investing in German property?

Browse our listings of houses, apartments and other real estate in Germany:

http://germany.themovechannel.com/property/all

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Property prices skyrocketing in major German cities

Sarah Kendell — 24/06/2011 10:44:00

Home values in Berlin and Frankfurt have shot up by 17% and 15% respectively since October last year, mainly due to a lull in construction and rapid housing demand as the German economy continues to lead Europe, reports the Wall Street Journal.

The newspaper reports that as the local middle class is becoming increasingly more affluent, demand for single and small family homes is actually growing as the population is shrinking. With building permits for single family dwellings having fallen 36% in the last five years, supply in the two major cities is at a historic low.

Potsdam, a more low-key city 17 miles from the capital that is currently being touted as Berlin's answer to the Hamptons, is also experiencing massive appreciation, with average home prices currently at €406,000 and values expected to appreciate 41 percent by 2020. “If Berlin is Germany’s New York, Potsdam is better than the Hamptons or Long Island because the commute is shorter and it has everything from shopping to culture,” says local agent Victoria von Koeckritz of Engel & Volkers.

Rental yields as a whole across the country can be fairly modest, reports the Journal's Renee Schultes, as the national rent control system locks landlords into a particular price for fixed two year periods. "Investors should literally do their homework", she comments, mentioning that the best investment markets are localised around the cities, such as Berlin where rent prices have risen 8% since 2009.

Interested in property in Germany?
Browse our listings of apartments, houses and other properties for sale in Germany here: http://germany.themovechannel.com/property/all/

Market expert predicts German property price surge

Sarah Kendell — 29/03/2011 10:26:00

When you're talking 2011's investment hotspots, they don't come much more iron-clad than Germany. The northern European economy seems to just keep on powering away, supporting its floundering siblings Spain and Portugal and acting as a one-man insurance policy against the collapse of the euro. Yet despite its robust economy, Germany is yet to have a significant property boom in recent history - but experts now predict this could be the year.

"For security-oriented investors, Germany is more attractive because it's less volatile", property analyst Tobias Just of Deustche Bank told UAE newspaper The National. "The German market is benefiting from the strong economy, low interest rates and a low number of completions, which has made supply scarce."

Just predicts a modest 2 percent rise in residential property prices across the nation's major cities this year, though sales trends from 2010 would seem to indicate an even bigger jump in values. According to Hamburg-based brokers Dahler & Company, luxury apartments and houses saw a massive sales increase year-on-year from 2009 to 2010. Sales of stand-alone houses valued at €2 million or more increased by 31 percent, while luxury apartments value up to €2 million increased by a huge 108 percent.

Meanwhile, after a swathe of property advisers urged commercial investors to look to Germany, prices are rising in the industrial/office sector too. Excess demand means there are now more buyers in the German commercial property sector than renters - in 2010, foreigners spent €7 billion in the German commercial property market, or 36% of the total spend in the market. While this means rental yields are expected to fall, it also means values for office premises will keep on rising as more investors make their way to the market.

Interested in property in Germany?
Browse our listings of houses, apartments and other properties for sale in Germany here: http://germany.themovechannel.com/property/all/

Number of German apartment deals already outstrips 2010

admin — 16/11/2011 06:19:00

Nine major residential property transactions, representing more than 800 units, took place in Germany in the first half of 2011.

“About 42,900 units were transacted as a result of the deal and the total number of apartments traded already outperforms the relatively low overall turnover of the two previous years of 28,000 dwellings in 2009 and 33,500 in 2010,” Patrizia Immobilien told OPP this week.

Source: OPP.org.uk

Tui prepares Greek hoteliers for possible euro exit

admin — 07/11/2011 09:10:00

German tour operator Tui has asked hotels in Greece to sign new contracts spelling out how the company will pay its bills if Greece leaves the eurozone and starts using a new currency.

A spokesman for the company confirmed it had written to hoteliers after the letter had been reported in German newspaper Bild.

In the letter, Tui said it was entitled to pay in whatever currency was in use.

But the Greek Tourist Board said that no hotelier would agree to that.

Source: BBC

Retail property investors pick Germany over UK

admin — 03/11/2011 08:00:00

Germany overtook the UK as Europe's largest retail property investment market in the third quarter of this year, with investors shying from Britain's weak economic growth forecasts and falling consumer spending, research showed.

Property consultant CBRE said on Tuesday that Germany saw 2.3 billion euros (1.9 billion pounds) of retail investment in third-quarter 2011, against the UK's 1.8 billion euros. The two account for 51 percent of the European market.

"Germany is attracting strong demand from international investors, but also increasingly from local players, who in the current uncertain climate are shifting their focus back to their home market," CBRE's Associate Director for EMEA Research, Iryna Pylypchuk, said in a research report.

The amount invested in the UK was the country's weakest quarterly investment result since first-quarter 2009, CBRE said, noting investor demand for good quality assets, particularly from international players, remained strong.

Source: UK.Reuters.com

Video: EU leaders reach bailout agreement

admin — 28/10/2011 05:23:00

A further financial crisis was hopefully averted in Europe as the European Union leaders reached a bailout agreement after a marathon brainstorming session.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/debt-crisis-eu-leaders-reach-bailout-agreement/

Leaders agree eurozone debt deal after late-night talks

admin — 27/10/2011 06:15:00

European leaders have reached a "three-pronged" agreement described as vital to solve the region's huge debt crisis.

They said banks holding Greek debt accepted a 50% loss, the eurozone bailout fund will be boosted and banks will have to raise more capital. Shares on European markets rose sharply on news of the deal.

The agreement is aimed at preventing the crisis spreading to larger eurozone economies like Italy, but the leaders said work still needed to be done.

After marathon talks in Brussels, they agreed a mechanism to boost the eurozone's main bailout fund to about 1tn euros (£880bn; $1.4tn).

Source: BBC

Video: Travel Guide - Breuberg Castle

admin — 25/10/2011 05:56:00

Breuberg Castle and Veste Otzberg lie in the southern part of Hesse, Germany. Both have an unbelievably complex history.

Watch the full travel video on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/destination-breuberg-and-veste-otzberg/

Video: Finance ministers meet to discuss Euro bailout fund

admin — 25/10/2011 04:58:00

European finance ministers met last Friday, followed by a meeting of ministers from all 27 European Union countries on Saturday.

Euro-area and EU leaders meet today and another Euro summit is to be held on October 26th - the deadline to finalize a plan for the Euro bailout fund.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/ufxmarkets-euro-bailout-fund-currency-trading-news/

European retail real estate see strong investment

admin — 24/10/2011 08:39:00

European retail real estate investment is up 38% quarter on quarter to €6.7 billion with demand for prime retail to remain relatively strong during the last quarter of the year, according to a new report.

The third quarter report from Jones Lang LaSalle says that 2011 year end volumes are likely to exceed €28 billion, up by 35% on last year and significantly above the €12.3 billion recorded in 2009.

It reports that retail real estate investment remained strong throughout the summer, despite the volatile European recovery and economic headwinds that continued to face the sector. Direct investment in retail real estate in Europe during the third quarter of 2011 reached €6.7 billion, up from €4.9 billion in the second quarter of 2011 and significantly up on the €3.8 billion transacted in the third quarter of 2010.

Total investment volumes for the year to date now stand at €20.4 billion, up by 45% over the same period last year, almost on a par with total 2010 volumes and far exceeding full year volumes of €12.3 billion in 2009.

Source: Property Wire

Germany continues to draw strong international interest

admin — 21/10/2011 07:35:00

Interest in German commercial real estate remains high among both German and international investors with retail property a top favourite, according to a report from Colliers International.

'Total transaction volume up to the end of the third quarter came to just under EUR 16.8 bn, more than 27% above the previous year’s result,' said Andreas Trumpp, head of Research at Colliers International in Germany. 'The quarterly results have been very balanced thus far, fluctuating between EUR 5.4 bn and 5.7 bn,' he added.

Prime yields for first-class office properties are holding steady when compared with the previous quarter, with the exception of Stuttgart, where a decline of 20 base points was noted, from 5.40% to 5.20%. Munich (4.50%) and Hamburg (4.70%) are the most expensive locations, followed by Berlin (5.00%), Frankfurt (5.20%), and Düsseldorf (5.25%).

About 31% of the transaction volume registered between January and September (EUR 5.2 bn) came from portfolio sales. International investors invested some EUR 6.6 bn in Germany during this period, making them responsible for about 40% of the investment volume. About EUR 7 bn, or about 42% of the transaction volume, was registered in the country’s six top locations: Berlin, Düsseldorf, Frankfurt, Hamburg, Munich, and Stuttgart.

Source: PropertyEU.info

Germany sees more interest from overseas property buyers

admin — 13/10/2011 07:26:00

Germany is seeing more interest from overseas property buyers as its economy is regarded as more stable than many other European countries.

It has entered the top ten list compiled by TheMoveChannel for the first time in terms of the most popular property destinations.

Germany jumped four places in the overseas property portal’s rankings to take the tenth spot, joining the familiar faces of Spain, France, Portugal and the United States.

The country accounted for 2.19% of all enquiries received by TheMoveChannel in September, replacing the small island of Cape Verde, which dropped 12 places after its surprise entry into the top ten last month.

Source: PropertyCommunity.com

Europeans most likely to invest more in real estate, survey shows

admin — 10/10/2011 10:30:00

Only 43% of European real estate investors report any increase in risk appetite since early 2011, compared to 46% globally, and 64% in Canada where investors show the biggest uplift in risk appetite, new research shows.

According to the Colliers International 2011 Global Investor Sentiment Survey, which takes the pulse of property investors worldwide, measuring their appetite for risk, optimism, key concerns and sense of market cycles, Europeans are more likely to increase their property holdings.

However, stock remains a concern with 49% reporting the supply of ‘for sale’ property remained a key barrier to expansion and over 54% stating they were focused on core property with target IRRs of five to 10%.

With 57% of investors reporting their risk appetite had not increased since the start of the year, it is not surprising those looking to expand are focused on safe bets, says the report.

Source: Property Wire

Video: Impact of inflation on European listed real estate

admin — 07/10/2011 04:07:00

Investor sentiment regarding the prospects for European listed real estate securities remains mixed, according to Bart Gysens, head of property research with Morgan Stanley.

Gysens, who spoke with REIT.com during the European Public Real Estate Association’s annual conference in London in early September, said the market turmoil in August shifted what had begun to be a broader positive view on the market.

“Buy-side consensus has deteriorated rapidly. Sell-side consensus is still relatively bullish, but I think people are adjusting their views,” Gysens said.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/impact-of-inflation-on-european-listed-real-estate/

Expo Real attracts 1,600 exhibitors

admin — 30/09/2011 07:37:00

Some 1,610 exhibitors from 34 countries have signed up to showcase their wares at the Expo Real property fair in Munich next week. The figures is roughly similar to last year's event.

Eugen Egetenmeir, managing director of fair organiser Messe München, commented: 'In the wake of the debt crisis, and all the turbulence on the financial markets and in share prices, these figures show that Expo Real, with its focus on investment in commercial property, is proving to be a stabilising force.' The 14th International Trade Fair for Commercial Property and Investment takes place from 4 to 6 October 2011 in Munich.

Taking up a total of six exhibition halls and 64,000 m2 of space, Expo Real covers the same area as last year, but more intensive use is being made of that space, because of increased demand from exhibitors.

Joint stands, where groups of exhibitors from individual countries, regions or cities put on their presentations, continue to be highly popular. Among the countries taking national pavilions in 2011 are Austria, France, Luxembourg, the Netherlands, Spain, Switzerland and the US. And this year, the hotel sector is enjoying a premiere at Expo Real, with a joint stand on the theme of 'World of Hospitality'.

Source: PropertyEU.info

Barroso says Europe will avoid return to recession

admin — 05/09/2011 10:43:00

Europe will not slide back into recession, and the euro remains "strong and resilient", the president of the European Commission has said.

Jose Manuel Barroso added that the Commission and national governments were "doing all it takes" to tackle the debt problems in the eurozone area.

His comments came after rating agency Standard & Poor's (S&P) said last week that the risk of a double dip recession in the eurozone had grown.

Yet S&P said that it should be avoided.

Source: BBC

New biometric residence permits for Germany

admin — 01/09/2011 07:04:00

New biometric residence permits for non European Union citizens are being introduced in Germany from today.

The electronic chip cards are replacing the existing paper residence permits that are regarded as open to being faked. It is part of a general move to combat identity fraud and to comply with European Union rules.

Non-EU citizens living in Germany will only have to apply for a new card once their existing paper permit runs out. By 2021, all residence permits should be replaced by the electronic cards.

The new credit card sized permits will contain a biometric photo and two fingerprints. Cardholders will also be given an individual PIN code.

Source: ExpatForum.com

German investors second largest in European commercial property

admin — 25/08/2011 04:13:00

Commercial real estate investors from Germany remain significant players in the European property market, but are increasingly focusing on their home market, according to the latest data from CB Richard Ellis (CBRE).

Germans were the second largest players in the European property investment market in the first half of 2011, accounting for 16% of total real estate investment activity in Europe. However, German investors have become far more focused on the strong economic fundamentals and resulting opportunities in their home country, rather than cross-border markets.

Many investors consider Germany’s property investment market as stable and prosperous and are therefore increasingly targeting this market, according to the report. Nine of the 10 largest deals by German property investors took place in Germany in the first half of 2011, composed primarily of office and retail deals.

Mirroring investors’ preferences for prime German assets, the maximum loan size in Germany doubled to €200 million in a single quarter, with competition between lenders to finance prime transactions in this core market allowing Germany to defy the trend of tightening lending conditions that has been spreading across Europe.

Source: PropertyWire.com

German investors shift focus to domestic market

admin — 19/08/2011 06:31:00

Germans were the second largest players in the European property investment market in the first half of 2011, accounting for 16% of total real estate investment activity in Europe. However, German investors have become far more focussed on the strong economic fundamentals and resulting opportunities in their home country, rather than cross-border markets.

Many investors consider Germany's property investment market as stable and prosperous and are therefore increasingly targeting this market. Nine of the 10 largest deals by German property investors took place in Germany in H1 2011, composed primarily of office and retail deals.

Mirroring investors' preferences for prime German assets, the maximum loan size in Germany doubled to EUR 200 mln in a single quarter, with competition between lenders to finance prime transactions in this core market allowing Germany to defy the trend of tightening lending conditions that has been spreading across Europe.

Source: PropertyEU.info

Video: Tourist guide to Germany's oldest town

admin — 17/08/2011 06:14:00

Trier is Germany's oldest town.

Founded in or before 16BC, the West German city is known for its well-preserved medieval and Roman buildings. But what are the main sights to see in Trier?

Watch a full tourist video guide on TheMoveChannel.tv.

Europe pressures Merkel to accept Euro bonds

admin — 16/08/2011 06:34:00

The introduction of euro bonds, government debt issued by the entire euro zone, may be the only remaining way to solve the euro debt crisis, say some government leaders and economists, and Chancellor Angela Merkel could come under pressure from French President Nicolas Sarkozy to drop her categoric opposition to them at the special meeting planned by the two in Paris on Tuesday.

Over the weekend, Italian Finance Minister Giulio Tremonti called for the introduction of such bonds, saying, "We wouldn't be where we are now if we had had euro bonds."

The chairman of the euro group of euro-zone finance ministers, Jean-Claude Juncker of Luxembourg, and the EU Economic and Monetary Affairs Commissioner, Olli Rehn, have long proposed euro bonds, arguing that they would restore stability by stopping speculative attacks on the debt of individual euro member states.

But they would also increase Germany's borrowing costs, because the interest rates on such debt would be higher than on German sovereign bonds. Estimates for the annual rise in German interest payments vary widely, from €10 billion ($14.3 billion) to just under €50 billion ($72 billion).

Source: Spiegel.de

Now is time to invest in German student market, says Savills

admin — 01/08/2011 12:57:00

The “undervalued” German student market is ripe for investment according to global agency Savills.

Research conducted by Savills found that in the last ten years the number of students in Germany has increased by roughly 18% to over 2.1 million. And currently, there are only 181,000 places available in publicly funded halls of residence.

The Savills’ survey looked at German cities with at least 10,000 students. It applied four indicators – market size, supply of halls, apartment vacancy rate and income burden - to measure the status quo, and five others – market attractiveness, demand trends, demand projection population projection and economic prosperity – to measure market dynamics.

Source: OPP

European retail real estate investment increases 34%

admin — 27/07/2011 10:01:00

Direct investment in retail real estate in Europe during the second quarter of 2011 reached €4.9 billion while total investment volumes for the year to date now stand at €13.6 billion, 34% up over the same period last year, according to figures from Jones Lang LaSalle.

The majority of investment activity remained focused on the UK and Germany, accounting for 56% of total volumes over the quarter, while transactions in Sweden totalled €572 million as the region continued to attract significant interest. Sweden has already surpassed transaction volumes levels recorded for the entirety of 2010, exceeding €896 million in the first half of this year alone.

A number of growth markets saw increased activity over the quarter with volumes in Russia at €432 million and Poland at €332 million boosted by some key transactions, most notably the €278 million purchase of Gorbushkin Dvor and Filion Shopping Centre in Moscow by MTZ Rubin and the €171 million acquisition of Promenada Shopping Centre, Warsaw by Atrium.

‘Current investor demand remains focused on the core European markets of France and Germany but we also expect Poland and CEE to witness significant investment volumes by the year end. Investors driven by higher returns are focusing on the growth markets of Russia and Turkey which provide prospects for rental and turnover growth as well as potential for yield compression,’ said Jeremy Eddy, head of EMEA Retail Capital Markets at Jones Lang LaSalle.

Source: Property Wire

Agreement on Greece important for the euro, says Merkel

admin — 29/06/2011 10:07:00

German Chancellor Angela Merkel praised the agreement reached by European leaders to release the new emergency aid for Greece, provided that the Greek parliament approves this week, the adjustment and privatization plan agreed with the EU and the International Monetary Fund (IMF), saying it is “important for the stabilisation of the euro.”

“We’re learning the right lessons from the crisis and the meeting was very pleasant and very good,” said the Chancellor to reporters on her arrival at the second day of meetings of the Heads of State and Government of the EU in Brussels.

Merkel has described as an “important political agreement for the stabilisation of the euro” that the euro zone undertook to pay emergency aid to Greece this summer of 12,000 million euros to avoid its bankruptcy, and to start work on a second rescue package of around 100,000 million euros, provided the Greek parliament approve the necessary reforms.

The Chancellor stressed that Thursday’s decision shows that the EU will do “everything necessary to preserve the stability of the euro as a whole” and it will encourage Ireland and Portugal “to implement their programs seriously.”

Source: Kyero

Euro recovers, sterling falls after renewed EU confidence

admin — 27/06/2011 11:29:00

Sterling range traded against the Dollar but fell versus the Euro ahead of the release of the Bank of England MPC minutes last week. The Bank of England minutes took on a distinctively dovish tone as the members voted 7-2 for no change to interest rates and 8-1 on keeping the value of the £200bln asset purchase scheme unchanged. The decisions were as markets had expected but what weighed heavily on the Pound was the fact that more of the MPC members seemed to suggest additional stimulus rather than monetary tightening may be required this year.

The Euro recovered some of its composure this week as risk aversion eased after the Greek government survived a ‘no confidence’ vote on Wednesday. An added support factor for the single currency was uncertainty and the expectations of a continue dovish stance on policy from the US Federal Reserve Bank. Greek debt concerns remained an underlying theme last week as confirmation of a bailout wasn’t forthcoming from European leaders and ultimately combined with slightly weaker German economic fundamentals to pull the Euro to its a weekly low versus the Dollar as the weak closed.

The Dollar struggled with profit-taking early last week after having pushed higher for some time due to sovereign debt concerns for Europe and analysts expected the Fed to strike a cautious note on the US recovery after its interest rate decision last Tuesday. The Federal Reserve Bank kept interest rates unchanged at 0-0.25% as expected but surprised markets by being more hawkish regarding stimulus as the support needed by the US economy. The Fed change in policy stance and stronger USD final Q1 GDP figures lifted the Dollar and despite some weakness prompted by a drop in oil prices late in the week the Dollar closed near its weekly highs.

This week

The Pound will have plenty of data to trade from this week as markets focus on the final release of UK Q1 GDP figures. The numbers are not expected to be revised from 0.5% and in the context of last week’s dovish Bank of England minutes this data is not likely to inspire investors to buy into the Pound, weak growth levels were highlighted as an underlying cause of the change in policy expectations and the consideration of further economic stimulus.

European Leaders have given the Greek government and opposition parties an ‘ultimatum’ to pass proposed austerity measures and move forward bailout negotiations but the longer the process goes on the greater the negative impact this will have to confidence in the Euro. German economic data will certainly be closely watch and with CPI inflation and retail sales data scheduled to be released this week there will be plenty to hold traders attention.

The Dollar has seen strong upward trends that are not expected to be reversed quickly as confidence in Europe remains uncertain and the Federal Reserve Bank has announced the end of its second round of quantitative easing. The impact of commodity process will likely be less of an issue as oil prices have stabilised following last week’s announcement of 60mil barrels being released from US oil reserves.

Source: Baydonhill FX

European holiday favourites benefit from boost in buying interest

admin — 27/06/2011 11:18:00

France, Italy and Germany are all attracting more interest from overseas property buyers, especially areas popular with Brits such as the Dordogne, the latest Rightmove Overseas index shows.

In May, some 56.2% of indexed locations saw increases in searches, 43.7% saw decreases, 0.1% no changes at all. Overall, searches for overseas property rose 15% in May.

Poland has broken into the top 20 countries for the first time, with searches increasing by a huge 248%. Top ten climbers include several French regions. The Dordogne was up 74%, Aquitaine up 47% and Limousin up 39%.

Italy also continues to attract a lot of interest with 17 out of 20 Italian regions see increased user activity in May. While Bavaria in Germany was the top climber for May with 82% more searches month on month.

Euro-zone wage growth picks up

admin — 20/06/2011 12:04:00

The increase in wages and other labor costs accelerated in the euro zone during the first quarter of 2011, although wages continued to fall in Greece and Ireland—two members that are grappling with fiscal crises.

The European Union's Eurostat agency Monday said wages and salaries in the 17 nations that use the euro were up 2.3% from the first quarter of 2010, a pickup from the 1.4% annual increase recorded in the final three months of 2010.

Total labor costs, which include taxes paid by employers, were up 2.6% from the first quarter of 2010, compared with a rise of 1.5% in the final quarter of 2010.

The pickup in wage growth will concern the European Central Bank, which raised its key interest rate in March in order to prevent a second round of price increases in response to higher commodity prices.

Source: Wall Street Journal

Why the Germans and French prefer to rent

admin — 31/05/2011 10:35:00

Englishmen may see themselves as king of their own castles, but the fact that Europe largely did away with its monarchies many years ago does not necessarily explain why those on the Continent are happier to rent, even if the situation is starting to change.

Germany has the greatest proportion of home-renters in Europe, and Germans still prefer to rent accommodation rather than own it. Only 39 per cent of the population own the homes that they live in compared with about 60 per cent in Britain. But that pattern is changing. Berlin is experiencing a boom in property buying: hundreds of recently renovated, turn-of-the-last-century apartments are being snapped up by wealthy Germans.

But as home ownership gradually increases, renting is still seen as a perfectly acceptable alternative, and is much more part of the fabric of German society. Rents controlled by local government and the reluctance of banks or housing associations to provide would-be home-owners with mortgages are among the main reasons for the Germans' preference for renting.

Unlike in Britain, Germany's more cautious banking system requires would-be home-owners to provide substantial guarantees of their ability to finance a loan before granting a mortgage. For many on low incomes or with little capital, owning a home has simply never been an option.

Source: The Independent

New shopping and food outlets coming to European airports

admin — 31/05/2011 10:14:00

Frankfurt Airport has unveiled some of the names which will be opening their doors in an ambitious new extension set to open next year.

The new 'Pier A-Plus' shopping concourse, which is scheduled to launch in summer 2012, will add more than 60 new stores to Frankfurt, Germany's busiest airport and a major European hub.

It will follow a new runway set to open later this year, which will increase the number of planes flying in and out of the airport to around 90 per hour.

New shopping brands on offer for passengers include German brands such as Wempe, one of the world's largest jewelers, and Engelhorn, a fashion department store.

Source: Relaxnews/The Independent

German exports rise to all-time high

admin — 09/05/2011 11:32:00

German exports surged in March to their highest level since records began, as the growing global economy lifted demand for its products and services.

The country's exports for the month totalled 98.3bn euros ($142bn; £87bn), 7.3% higher than February.

Its imports also reached an all-time high, up 3.1% to 79.4bn euros. Both imports and exports are the most since data started to be collected in 1950.

Germany is the world's second-largest exporter.

Source: BBC News

German Boom Fuels Inflation Angst

admin — 05/05/2011 04:44:00

In the last few days of his term, outgoing Bundesbank President Axel Weber appeared extremely satisfied with how effectively he had done his job. Looking back on seven years as head of the German central bank, he said, "we actually achieved quite a lot." Everywhere Weber goes, people rave about Germany's rapid economic recovery. In other words, things couldn't be better -- that is, if it weren't for a nagging problem that threatens to overshadow all the positive news.

Weber himself describes it in banker-speak: "Along with the economic upswing, we see a deterioration in the price outlook." In plain English: Prices are threatening to spiral out of control, and inflation is rearing its ugly head again.

The latest figures are indeed unsettling. Compared with the same month last year, consumer prices in Germany rose by 2.4 percent in April -- the biggest increase since the outbreak of the financial crisis in 2008.

This means that, for the fourth month in a row, the inflation rate in the euro zone's largest economy has been above the threshold of what the European Central Bank (ECB) considers compatible with general price stability, namely two percent.

Source: Spiegel International

European real estate investment up 32% in Q1

admin — 27/04/2011 10:59:00

Direct commercial real estate investment volumes in Europe reached EUR 26 bn in the first quarter 2011 (Q1 2011), representing an increase of 32% year-on-year, according to new research from Jones Lang LaSalle (JLL). Successful debt and equity issuance has provided liquidity to the market, which in turn drove cross-border investment from equity-rich investors.

JLL expects the current positive trends to continue and maintains its forecast for 2011 of up to a 30% increase in volumes across the region compared to 2010 figures (EUR 102 bn), as the volume of equity targeting European markets continues to rise.

Predominately driven by a continuing interest in core London assets, the UK continued to dominate the European investment market in Q1 2011, capturing 38% of all investment capital in the region (compared with 35% in Q1 2010). Significant activity was also witnessed in the French, German and Swiss investment markets, whilst Poland, Russia and the Czech Republic all experienced a strong start to 2011 with volumes up notably on those recorded in Q1 2010.

Russia, in particular, has seen a defined uptick in transactional activity; at EUR 763 mln, investment volumes in Q1 are almost three times higher than levels seen in the first quarter of 2010. In Poland, activity is 200% higher in comparison to Q1 2010 and investment volumes for the Czech Republic are already 89% of its 2010 total.

Source: Property EU

Eurozone 'sees two-speed economic recovery'

admin — 20/04/2011 06:19:00

Germany and France are outpacing the 17-nation bloc, but periphery nations like the Irish Republic and Greece are struggling, said research group Markit.

Its closely-watched purchasing managers index was 57.8 in April, up from 57.6 in March.

But economists said April's data was flattered by France and Germany.

Any score above 50 indicates economic expansion.

'Faltering demand' The overall figure was the second best since June 2007, and was helped by strong service sector growth in France and good manufacturing expansion in Germany.

Source: BBC

European Central Bank raises interest rates

admin — 07/04/2011 13:12:00

The European Central Bank lifted interest rates for the first time in almost three years to quell inflation even as Portugal became the third nation to succumb to the region’s sovereign debt crisis.

ECB policy makers meeting in Frankfurt today raised the benchmark interest rate to 1.25 percent from a record low of 1 percent, as predicted by all 57 economists in a Bloomberg News survey. It also raised the marginal lending rate to 2 percent from 1.75 percent and increased the deposit rate to 0.5 percent from 0.25 percent, maintaining 75 basis-point corridors either side of the benchmark.

While ECB President Jean-Claude Trichet said last month that a move today is “certainly not the start of a series,” investors expect two more increases to 1.75 percent by the end of the year as inflation accelerates and Germany’s economy booms. The risk is that higher borrowing costs may boost the euro and exacerbate the sovereign debt crisis, which last night forced Portugal to follow Greece and Ireland in seeking a European Union bailout.

“The ECB has decided that it will tighten policy for the core countries like Germany that are doing well and leave the non-standard measures support in place for the periphery countries,” said Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc in London. “The rate increase is appropriate and there will be another one as early as June.”

Source: Bloomberg

German, Italian real estate values fell slightly, report says

admin — 06/04/2011 12:24:00

The real estate markets in Germany and Italy saw capital-value declines in 2010, according to Investment Property Databank (IPD), but both look to be recovering.

Despite a 0.9% capital depreciation, total returns for German real estate were positive at 4.2% last year.

Meanwhile, Italian commercial property values finally stopped falling over the second half of last year, registering zero capital growth, according to the IPD Italy Bi-Annual Property index.

As a result, the first indication of the Italian market's full-year capital growth is still negative, at -0.3% – making it one of only three European commercial real estate markets that have so far registered annual capital depreciation, behind Ireland at -3.3% and Germany at -0.9%.

Source: IPE Real Estate

British 'the world's worst tourists' by their own admission

admin — 29/03/2011 11:51:00

The British certainly have a reputation for their less than admirable conduct on overseas trips, but surprisingly, it seems most travellers from old Blightly own up to their own antics. A recent survey from UK-based flight comparison website Skyscanner asking users' opinions on the worst tourist found Britons voted themselves the worst offenders in almost every category.

The British came top for not learning the local language, being drunk and disorderly, not trying the local delicacies and leaving stingy tips, the Independent reported. The poll was conducted amongst over 1,000 UK users, who voted Londoners the worst tourists out of all areas of Britain.

The only category where the British didn't come top was for rudenes, which was taken out by the Russians, followed closely by tourists from Germany and the US.

Source: The Independent

EU safety net comes just in time for Lisbon

admin — 28/03/2011 11:49:00

The EU's latest agreement on safety net measures to avoid a collapse of the currency bloc was overshadowed this weekend by the continuing economic woes of latest debt crisis victim Portugal.

The country, whose prime minister resigned last week after the failure of his budget to pass parliament, appears to be almost guaranteed to ask the EU for a multi billion euro bailout package similar to those of Ireland and Greece. This should occur within weeks, as it can no longer afford to pay the huge yield rates on its bonds.

After ratings agencies Fitch and Standard & Poor's cut Portugal's debt ratings last week, bond markets pushed up Lisbon's rate of repayment to over eight percent, which was a similar level at which Ireland relented and asked for a bailout.

Even so, German Chancellor Angela Merkel was optimistic that the new measures agreed at the weekend's Brussels summit should be enough to support any further ailing nations. "Very far-reaching and ground breaking decisions were made at this summit", she said. "We have ensured there will be durable support for the euro."

Commercial property insiders tip Germany to take off

admin — 24/03/2011 12:27:00

The rapid recovery of Germany, Europe’s economic powerhouse, is boosting economies in Central and Eastern Europe, according to a top property economist.

“Though southern Europe is having serious troubles, we are observing very strong growth in Germany and the Central and Eastern Europe [CEE] region,” said Peter Damesick, chief economist at property adviser CB Richard Ellis.

“Britain led the global property recovery in 2010. Now, investors are looking at where economic growth is stronger. And that’s Germany plus CEE,” Damesick told the Hürriyet Daily News & Economic Review during an interview earlier this month.

However, it also has formidable rivals. “Poland emerges as a most attractive and interesting market, especially in retail property investments,” Damesick said. “The Czech Republic is offering lots of opportunities, while German growth also helps Russia in the property sector.”

Source: Hurriyet Daily News

HSBC releases online app for expats

admin — 23/03/2011 11:16:00

HSBC Bank International has today announced the launch of its new interactive Expat Explorer tool, an online resource providing users data from the company's annual Expat Survey. While we're not big on sifting through massive amounts of data, the reports available could easily prove useful to people looking to spend extended amounts of time living and working in another country.

One of our favorite features? The three categories, Economics, Experience and Offspring each have easy-to-use dropdown tabs to categorize countries by qualifications that matter to you, including "healthy diet," "organizing school for my children" and "social life." Plus, each unique query generates its own link, which can be shared with friends and family and across social media sites, which easily can provide a colorful picture of what life will be like in a new location.

Of course, the survey isn't perfect - from the boxes we checked, we'd be best off living in Bahrain ... naturally, the findings are based on 2010 survey data and not current events.

"Considering a move abroad can be a daunting prospect, often involving a huge amount of research," said Lisa Wood, HBSC Bank International's head of marketing. "[H]opefully through our new online resource we'll provide some really useful insights for any potential expats."

Source: Gadling

France property enquiries soar for February

admin — 18/03/2011 12:17:00

France is becoming a more popular country for overseas buyers as the number of internet searches for real estate rises, according to a new report.

Germany is also increasingly popular, registering a 49.48% rise in searches, the latest monthly report from Rightmove Overseas shows. Top 10 climbers included several French regions.

The Midi-Pyrénées was up 6.87%, Alpes-Maritimes up 6.53%, the Loire Valley up 5.59% and the Pays de la Loire up 2.5%. In the country chart, top climbers were Ireland, up four places and Germany, up one place, with price making a big difference according to Robin Wilson, head of Overseas at Rightmove.

‘Bargain hunters are out in force, primarily focused on Spain and Ireland, both markets with well documented supply/demand problems and negative headlines. This interest helped properties in Ireland rise four places up to 11th, in our search chart, an all time record for the Emerald Isle,’ he said.

‘For vendors in these countries it’s not so good news as the headlines are driving expectations that prices haven’t bottomed out. Some advertisers we work with are reporting offers coming in 10% to 20% below asking prices that are already hugely reduced which puts vendors in a really tricky situation, take the money and run, or pull up the drawbridge and just ride it out,’ he explained.

Source: Property Wire

Savills concerned over Asian property uncertainties

admin — 17/03/2011 12:57:00

Global property firm Savills has warned of uncertainties in the Asian market created by the twin issues of Japan's crisis and attempts by countries to cool their markets. Its comments came as it reported strong growth for 2010, especially in Asian capitals, which accounted for 41% of Savills' sales last year.

Profits rose 173% to £36.8m last year, with revenues up 21% to £677m. But chief executive Jeremy Helsby said 2011 could see "reduced volumes".

During 2010, Savills said markets in London and Asia saw a "strong performance", with France, Germany and the US also seeing growth. But Mr Helsby was cautious about 2011, with some Asian countries raising interest rates and taking measures to cool fast-growing property markets.

He said: "In the near term, it is unclear how markets will react to the recent catastrophic events in Japan, particularly at a time of unprecedented global economic and political change. For the markets of mainland China, Hong Kong and Singapore these events come on top of government measures of the last 12 months to address property speculation."

Source: BBC News

European distressed property to rise in 2011

admin — 14/03/2011 11:03:00

The expected supply of available distressed property is expected to rise more quickly in Europe than any other world region in the first quarter of 2011, and notably in Ireland, Hungary, Germany and the UK, finds the Q4 2010 RICS Global Distressed Property Monitor.

The survey for Q4 suggests a small fall in the level of specialist funds interest in distressed property, down from 21 countries in Q3 to 18 in Q4 2010, and a rise in distressed properties coming to market. This trend looks set to continue into Q1 2011, with property professionals in 64 percent of countries covered reporting an expected increase in distressed property coming to market in the coming 3 months.

In Q4 2010, agents in 15 countries reported a rise in levels of distressed property as compared to 13 in Q3; Australia and Germany saw the most notable up-ticks. Looking ahead to Q1 2011, distressed property listings are expected to rise at a faster pace in 40 percent of the countries covered. Agents in the Republic of Ireland, Hungary, the UK and Germany expect the biggest increases in distressed listings, while agents in Australia and Portugal are also expecting higher levels of activity. Agents in Russia and Brazil, however, expect to continue to see declines.

In Q4 2010, the Ukraine experienced the most dramatic fall in the pace of investor interest, while interest rose in the Republic of Ireland, UAE and Spain. France saw the largest rise in investor interest overall, however, with net balance percents moving from 0 in Q3 2010, to +25 for this quarter.

Commenting on the survey, Simon Rubinsohn, RICS Chief Economist said: “The prospect of more distressed property in real estate markets that are still under severe pressure will inevitably compound the squeeze on pricing. However, in those parts of the world where commercial property is enjoying more of a recovery, the prospect of further distressed assets will have only a very limited impact.

"Significantly, according to our survey the level of distress expected to come to the market in Brazil, Russia and China is set to drop from what already were modest figures."

Source: Property Magazine

Berlin district suffers from ‘tourist overload’

admin — 09/03/2011 13:17:00

Berlin's once run-down district of Kreuzberg has been a symbol of Germany's celebrated alternative culture for decades. It revels in a reputation for riots, ethnic diversity, squatting and "scene" bars and clubs. It has returned a Green MP to parliament for almost as long as its inhabitants can remember.

Now, however, the "right on" residents of arguably the German capital's hippest borough are up in arms over a new threat, posed not by eviction bailiffs, greedy developers or drug busting police, but an apparently insufferable tide of young, back-packing, budget flight tourists.

"The noise they make is unbearable, especially in the summer," complained one resident who lives near Kreuzberg's fashionable Bergmannstrasse in an interview with Der Spiegel magazine. "They play loud Techno music until the early hours of the morning and the children can't sleep."

Kreuzberg's residents complain that swarms of young twenty-something tourists invade the borough especially at weekends and in the summer to stay in an increasing number of cheap hostels or illicitly rented-out apartments. At night they flock to its trendy all-night bars, which are advertised in guide books as a "must for party animals".

Source: The Independent

German residential property continues to grow

admin — 08/03/2011 11:38:00

The German residential sector is showing significant strength with a spate of new construction activity happening across the board thanks to the improved economy and lower unemployment rate, according to BulwiendaGesa and WGF.

In the residential segment, the highest rent increases for 2010 occurred in Berlin (6%), followed by Hamburg and Munich (5%) and Düsseldorf (3%). The investment volume of residential portfolio sales increased from €3.3bn in 2009 to €3.8bn in 2010.

The survey noted that hotel real estate in Germany was performing better than other European cities due to growing tourism and a gradual pick-up in business travelers, which has contributed to higher occupancy rates. In 2010, the transaction volume in the hotel industry nearly doubled from the previous year to reach €800m. Foreign investors in German hotel investment market accounted for 63%, up from 21% the year previous.

In Frankfurt, revenue per available room increased by 20% year-on-year in 2010. The study showed that the economy and mid-range hotels, which have better price-to-performance ratios, are benefiting in particular from the increase in occupancy rates. In addition to A cities, a similar resilience is noted in B and C cities.

Meanwhile, the trend in office and retail markets remained stable. In the last quarter of 2010, turnover increased by 9% compared with the previous quarter. Among the cities, Berlin offered the largest amount of office space at 18.4m square meters.

London, Germany top markets for holiday rental

Sarah Kendell — 04/03/2011 11:27:00

According to data from HomeAway.co.uk, in 2010 Dubai's holiday rentals market showed definite signs of recovery, with an increase of 5% in booking enquiries for the year following large decreases in 2008 and 2009. The emirate was among the top ten most enquired about cities in the second half of the year and owners listing on the site also reported huge increase in business.

Germany, a new favourite for ski?

According to the Q4 2010 report from the European Travel Commission, Germany was one of the best performing markets in 2010 and this trend is mirrored on HomeAway.co.uk. The country's economic stability is increasing its popularity with residential investors and buyers are now focussing on Germany's stable rental potential.

Interest from travellers is also strong. The country climbed from the 12th most popular in the second half of 2009 to the 9th most popular in 2010 on HomeAway.co.uk. What's more, Germany appears to be a new favourite among ski enthusiasts too. The mountain resort town of Garmisch-Partenkirchen in Bavaria ranked sixth out of the top ten most popular ski destinations, coming in above Samoens, Tignes and Meribel in France, and Haute Nendaz in Switzerland.

London calling - the Olympic effect

With the 2012 London Olympics set to attract millions of visitors to the capital, savvy travellers are starting to book well in advance. On HomeAway.co.uk enquiries started to pick up towards the end of 2010 and there was a huge year-on-year growth in enquiries for the Olympics dates as at the end of January 2011 compared to January 2010 (+3,804%).

Tim Boughton, UK General Manager, HomeAway.co.uk said: "The switch from hotels to holiday rentals has been steadily increasing, with particularly high spikes in demand around major sporting events. For the 2010 World Cup in South Africa, many visitors sought out holiday rental properties as an alternative to a hotel, which meant the average weekly income generated per property soared by almost 150 per cent. However, even at this increased rate, holiday rentals still often work out far cheaper than similar standard hotels, making them a highly attractive option for tourists."

Source: HomeAway.co.uk

European property market picking up, says RICS report

admin — 02/03/2011 12:54:00

The majority of Europe’s residential property markets are undergoing recovery, though some are in dire straits still, while others are positively booming, according to a new report.

Hot north, cold south is the simple geographic description of Europe’s housing markets with the Nordic countries, Germany and its southern neighbours, France and Belgium all experiencing rises in real house prices in 2010, the new European Housing Review 2011 from the Royal Institution of Chartered Surveyors shows. Ireland, Hungary and Cyprus experienced falls while Spain, Greece and Portugal saw moderate falls despite their economic difficulties. Prices were slightly down in the UK, Netherlands, Poland and Italy and the Baltic States were recovering from their major crashes.

Unlike previous housing market upswings, prices increases are leading other market indicators, such as transactions and house building but mortgage constraints are affecting many markets. But interest rates are low and there is little evidence of substantial mortgage debt deleveraging by households in countries with high levels of mortgage debt.

The report also says that house building is down all across Europe and is severely lagging recovery in most places. According to the report’s author, Michael Ball, Professor of Urban and Property Economics in the School of Real Estate and Planning, University of Reading, it does not look as though Europe as a whole is following the USA into many years of housing market mire.

‘But, all the same, there are worrying aspects to the recovery. Perhaps that is unsurprising given the scale of the financial crisis and the more European specific sovereign wealth crisis that followed. Nevertheless, there are several distinctive issues over and above the normal uncertainties that surround the initial phase of an upturn,’ he said.

Source: Property Wire

Euro industrial property landlord posts healthy value gain

admin — 25/02/2011 11:36:00

European industrial landlord Segro posted a 2.5 percent rise in ful l-year net asset value, and said it would exit Spain and Hungary to focus on its stronger core markets including the UK, France and Germany.

The company posted EPRA NAV per share of 376 pence in the year to end-December 2010, up from 367 pence a year ago, while its net rental income increased 4.7 percent to 282.1 million pounds in the period, Segro said in a statement on Thursday.

'Spain and Hungary are relatively small investments for us, and the economics are not encouraging for us to put more into those markets,' said CEO Ian Coull, adding Segro's focus on the continent will be in Germany, France, Poland and Benelux.

At 0800 GMT, Segro's shares opened up 1.5 percent to 326.8 pence each, ahead of the 0.3 percent fall in the broader UK property stocks index. Segro, which has a portfolio worth 5.3 billion pounds, said it cut its group vacancy to 12 percent, from 13.5 percent a year ago, and proposed a final dividend of 9.6 pence per share for a total 2010 dividend of 14.3 pence, up 2.1 percent on 2009.

Source: London South East

German election spells further insecurity for EU

admin — 23/02/2011 12:52:00

With the world’s attention understandably elsewhere, the Eurozone spent the last week maintaining the status quo. North Africa’s chaos rattled European stock markets, and the ongoing economic recovery lead to threats of looming inflation, but the calm before the upcoming March summits held.

Portugal scraped by, avoiding bail-out for another week, while prime minister Jose Socrates announced a 58.6% reduction in the state deficit from last year -- proof, he claimed, that his government’s austerity measures were working. Not enough proof, said most observers, who think that EU intervention is the only thing that will restore market confidence in the country, which has been fighting off stratospheric, unsustainable borrowing costs in the last few weeks.

Greek Prime Minister George Papandreou, visiting Angela Merkel in Berlin this week as part of a pre-summit tour of EU leaders, urged Merkel to consider more flexibility in dealing with the Eurozone’s ongoing debt crisis. Flexibility meaning, in this case, lowering the 5% interest rate on Greece’s bail-out funds, allowing debt buybacks on the table during the March summits and regulatory freedom for the EU’s rescue fund agency, the European Financial Stability Facility.

But Papandreou’s timing was poor. He arrived in Berlin the day after Merkel, driven by domestic politics in much of her actions over the last year, saw her party decimated in local elections on Sunday. Her Christian Democrats received a mere 21% of the vote in Hamburg, down from 42% in 2008.

Source: Minyanville

New merger to create world's largest stock exchange

admin — 16/02/2011 10:40:00

What’s in a name? Quite a bit if you’re two market giants negotiating the political minefield of an international merger — with headquarters in both New York and Frankfurt.

Deutsche Boerse and NYSE Euronext Tuesday announced a US$10.2-billion deal to create the world’s largest exchange operator. But they dodged a few key questions — one of the big ones being the new entity’s name.

With worries on both sides of the Atlantic about who will be in the driver’s seat, that name will have to appease a lot of national pride. U.S. Senator Charles Schumer, for example, has been insisting that NYSE should come first in the name of the group. Both NYSE Euronext and Deutsche Boerse said that each would keep its name in the country in which it operates.

But it may take several months to come up the group’s official title. “No decision has been made yet. It’s an emotional decision for everyone, let’s be honest about it,” NYSE chief executive Duncan Niederauer said at a press conference Tuesday. One thing it won’t be is “DB-NYSE Group,” Mr. Niederauer said — or NYSE-DB, we assume. “The Big Boerse” is also out, he said.

Source: Financial Post

German house prices on the increase

admin — 15/02/2011 11:22:00

German residential property prices rose in the fourth quarter, data showed on Tuesday, driven by the country's economic recovery and improving labour market. Prices for owner-occupied housing rose 1.5 percent year-on-year, figures from the VDP association of German mortgage lenders showed, after posting a 1.4 percent increase in the previous three month period.

The growth was the strongest increase since the fourth quarter of 2008 and represented a 0.6 percent rise on a quarter-on-quarter basis. "Against the background of favorable developments in the labour market, we expect prices for owner occupied dwellings to post a further moderate rise," VDP General Manager Jens Tolckmitt said in a statement.

German economic growth slowed in the fourth quarter, dragged down by cold winter weather but supported by trade, flash gross domestic product data showed earlier in the day.

Source: Reuters

How Germany avoids the property bubble trap

admin — 14/02/2011 11:17:00

How does this sound? An outside staircase leads up to this modern villa. Built on a near quarter-acre block, it boasts four bedrooms, three bathrooms, floor heating, garage, sauna, pool and a landscaped garden, complete with a fish pond. The suburb is green and leafy, yet it's only a short trip to the central business district by car or train. But the best thing is the price: this dream home could be yours for just under 600,000 euros. And it can be found in one of the nicer suburbs of the German capital, Berlin.

So what is it that has kept house prices so stable in Germany? An analysis of the market shows that low German property prices are not a new phenomenon. We are not looking at a market that had suddenly suffered a big house price crash. Quite the reverse is true: Germany's housing market has never had a big boom.

Before the global financial crisis, property markets in many countries went red hot with price increases. Between 2000 and 2007, real house prices increased by 94 per cent in Spain, 84 per cent in New Zealand, 80 per cent in Britain and 65 per cent in Australia. In Germany, real house prices actually fell by 18 per cent over the same period.

The constant supply of land for development has ensured a steady supply of housing. This, in turn, has not only kept house prices low, it has also prevented any kind of property speculation. If you know that future housing supply will have a dampening effect on house prices, you will only buy a house if you actually want to live in it.

The reason Germany has such strong housing supply is not obvious. Planning and building regulations in Germany are not less complex than elsewhere. When it comes to planning for development, however, Germany's complicated regulations do not matter much. That is because the interests of house buyers, builders, developers and town planners are in sync.

Buyers obviously want to buy something they can afford. Builders and developers would like to provide it to them today rather than tomorrow. And German town planners know that the best way they can help their councils is to make sure that the planning and building process works as smoothly as possible.

Source: Sydney Morning Herald

France and Germany fall out over Euro rescue fund

admin — 04/02/2011 11:11:00

Germany and France carry a quarrel over the euro rescue fund and a revamp of economic management into today’s European summit intended to sketch a path out of the debt crisis.

The euro region’s two leading economic powers are at odds over possible bond buybacks and a “competitiveness pact” that is German Chancellor Angela Merkel’s condition for strengthening the safety net for debt-strapped countries, according to three European officials involved in the talks who declined to be identified because the deliberations remain private.

Signs of discord snuffed out a three-day rally in European bond markets yesterday and knocked the euro off a three-month high, as investors questioned when Europe will come up with an anti-crisis formula. European Central Bank President Jean-Claude Trichet prodded governments to act, saying yesterday the rescue fund must “be as flexible as possible and also to be as effective as possible in terms of magnitude.”

Source: Bloomberg

Germany is top pick in unlisted property funds

admin — 03/02/2011 11:20:00

Germany overtook the U.K. as the most-favored investment location in Europe for unlisted real estate funds as the recovery of its economy, the continent’s largest, made offices and retail properties more attractive.

The U.K. fell to fourth place behind Germany, France and the Nordic region, according to an annual report by the European Association for Investors in Non-Listed Real Estate Vehicles. Inrev, as the association is known, surveyed investors and fund managers overseeing 981 billion euros ($1.3 trillion) of assets.

“This is a dramatic change in sentiment,” said Lonneke Loewik, the head of research at Amsterdam-based Inrev, in a statement today. “Investors seem wary of higher property prices and a slower economic recovery in the U.K., but attracted by growing confidence in the German and other European markets.”

Germany’s economy grew a record 3.6 percent last year as a surge in exports to Asia prompted companies to increase investment and hire more people, giving consumers more confidence to shop. Retail real estate in Germany was the most favored type of property among investors, while office buildings were the third most popular, the survey showed.

Source: Bloomberg

German unemployment hits 29-year low

admin — 01/02/2011 11:03:00

German unemployment fell to an 18- year low in January, stoking concerns that the world’s second- largest exporter is running short of skilled labor.

The number of people out of work declined a seasonally adjusted 13,000 to 3.135 million, the lowest since November 1992, the Nuremberg-based Federal Labor Agency said today. Economists forecast a drop of 10,000, according to the median of 32 estimates in a Bloomberg News survey.

The adjusted jobless rate fell to 7.4 percent from 7.5 percent. Falling unemployment helps bolster German consumer spending and corporate investments, adding to the economy’s export strength. As unemployment lines shorten and the population shrinks, industrial companies face a skilled labor shortage that may restrain growth.

“Long-term unemployment is declining,” said David Milleker, chief economist at Union Investment in Frankfurt. “We’ll most likely have a broader discussion about a lack of skilled workers.”

Source: Bloomberg

German retail property the investor's pick for 2011

Sarah Kendell — 25/01/2011 11:39:00

Germany, France and the Nordics have muscled the UK out of the top three investor picks for non-listed European property funds, with capital adequacy rules doing little to dissuade sector investment, a survey showed.

German retail property was in pole position with 36 percent of investor votes, a big shift from 2010, when it was ranked outside the top ten, the European Association for Investors in Non-listed Real Estate vehicles (INREV) survey said on Tuesday. Retail property in Germany, Europe's largest economy, is outshining that of its peers, driven by revitalised consumer spending, encouraging economic prospects for 2011, and affordable debt finance.

UK commercial property had dominated the top of the list for the last two years, with UK office, retail, industrial logistics and diversified filling out three of the top four spots, the survey showed.

This year, French office space was ranked second with 33 percent, while German offices were third with 27 percent, and Nordic retail was fourth at 24 percent, leaving UK office, UK retail and Nordic diversified tied for fifth place.

Stronger EU nations discuss safety net increase

Sarah Kendell — 18/01/2011 12:18:00

Euro-area finance ministers pledged to strengthen the safety net for debt-strapped countries and indicated they don't face pressure for immediate moves to tame the fiscal crisis.

Finance chiefs from the 17-country euro region yesterday weighed how to get the 750 billion-euro ($1 trillion) rescue fund up to its full potential, examined ways to give it more flexibility and didn't rule out boosting its size. The Brussels meetings conclude today with all 27 European Union ministers.

Putting more money on the table "is one of the issues we're discussing but a comprehensive package includes a series of things," German Finance Minister Wolfgang Schaeuble told reporters. "We have to tie together a package that relieves us of the necessity of having to keep reacting every few months."

A strengthening euro, signs of economic buoyancy and successful bond auctions in southern Europe bought time for European governments to look at how to stiffen the firewall against the year-old sovereign-debt crisis that threatens to undermine the single currency.

Berlin faces backlash against urban gentrification

Sarah Kendell — 17/01/2011 12:18:00

"How long is now," the giant mural on the side of the Kunsthaus Tacheles in Berlin's Mitte district asks. The answer, it appears, is not very long at all. The former department store, turned prison and then squat and alternative culture centre, appears to be on the verge of shutting down.

When its occupants have been pushed out and the building pulled down, another Berlin landmark of the post-Wall era will have gone. All that will be left behind on Oranienburger Strasse, once at the heart of East Berlin's counter-cultural scene, will be the C/O photography gallery, a block down from Tacheles. And its days are also numbered.

Tacheles and C/O may be the highest-profile symbols of the battle to define the shape of the new Berlin, but they are not the only ones, nor are they the most important. It is the urban poor who have suffered most from the gentrification of the old neighbourhoods in the city's east, and their resistance to the changes has been anything but passive.

Instead, wealthy newcomers to districts like the now fashionable Prenzlauer Berg have been treated to an often weekly ritual of car torching, a practice that peaked a year ago. Police and criminology experts have yet to identify the culprits, alternately settling on members of the radical "autonomous" movement or largely non-ideological young people simply angered by the visibility of the new wealth in once poor districts.

Germany to attract more foreign workers

Catherine Deshayes — 28/11/2010 17:41:00

Germany is set to increase efforts to attract more foreign workers due to a severe shortage of skills especially in engineering and IT...

As the country's economy grows after the global economic downturn Germany needs an extra 400,000 skilled workers, according to the German Chamber of Industry and Commerce.

From this month Germany is making it easier for electrical and mechanical engineers from the eight new States that joined the 27-member European Union bloc in 2004 to get work.

Germany had originally planned to continue with work restrictions for these countries by have done a U-turn because of the chronic shortage of skills.

‘We're struggling with the effects of staff shortages every day,' said Hans Georg Haerter, chief executive officer of ZF Friedrichshafen, a German company that makes gearboxes for the automotive industry. The company plans to hire 250 engineers next year.

The government is also considering a reduction in the minimum annual wage requirements to obtain a work visa for non-EU/EEA workers, currently set at €85,000 a year as employers in sectors such as the IT industry have complained that it is too difficult to find qualified personnel under the current rules.

Foreign students who earn a degree in Germany will also be allowed to stay and work for three years after getting their degree. More foreign students should be encouraged to study in the country, the German Academic Exchange Service (DAAD) has suggested.

In 2009, one in three foreign graduates of German educational institutions took advantage of legislation that allows non European Union graduates of German universities to stay on in the country and work in skilled professions.

DAAD President Sabine Kunst said the numbers must rise significantly to 300,000 by 2020 to meet the country's needs. ‘Recruiting foreign students appears to be the ideal way to boost Germany's skilled labour force,' she said.

While the German Foreign Trade Association is calling for more immigration. Indeed economics minister Rainer Brüderle wants a new immigration system put in place that will allow in more skilled workers from abroad.

Source: www.expatforum.com

'Food hotel' opens in Germany

Catherine Deshayes — 22/11/2010 18:52:00

Midnight snack-lovers seeking accommodation on Germany's River Rhine need look no further. The Food Hotel in Neuwied, Germany offers you the next best thing to sleeping in the supermarket aisle...

With furniture that looks like cans in the lounges, stools made of beer crates in the bar and both tables and cushions shaped like biscuits in one of the bedrooms, there is no getting away from food and drink in this supermarket-themed hotel.

Thirty-six of Germany's biggest household names, including food company Dr. Oetker, crisps manufacturer Chio, confectioner Ferrero and brewer Veltins have teamed up with the hotel's management to design and create unique bedrooms sure to please food and drink buffs.

"We have found sponsors from the industry for all of the rooms," hotel manager Peter Gruenhaeuser. "We gave them basic guidelines for the rooms but within those we allowed them complete freedom and the opportunity to let their creative imaginations run wild."

He said companies could "present their own product ideas and corporate philosophies" in the bedrooms.

In return the beverage and snack producers had to contribute toward the cost of constructing the hotel and pay for the furnishings in the room with their chosen design.

Each bedroom is unique -- in the room designed by Messmer, one of Germany's most prominent tea companies, everything revolves around tea, with traditional tea crates and images of exotic tea plantations providing decoration.

In the room designed by Ferrero, the scene of a TV advertisement for its Raffaello coconut candies set on a desert island is recreated -- there are palm trees, shells, summer hats, photos of sandy beaches and books about faraway dream destinations.

But the hotel's pride and joy is the room designed by German crisp manufacturer Chio, in which guests can feast on potato snacks while partying away under the rotating mirror disco ball -- or under the flashing lights in the bathroom -- to the beat pumped out by the room's integrated sound system.

Guests are free to choose which snacks, beverages and marketing campaigns they would like to spend the night with.

"We have several options for those who like it crazy, but we also have rooms for those who prefer a more conservative setting," Gruenhauser said.

In keeping with the food and drink theme, the hotel boasts its own full-blown supermarket and a reception which invites guests to relax on chairs that look like shopping trolleys.

A night in a single room costs about 90 euros ($124), but for those who want to share the novel experience, a double room costs 129 euros ($178) per night.

Source: Reuters

EU may create 'not so clean' airport list

Catherine Deshayes — 10/11/2010 18:59:00

The European Union failed yesterday to agree on a German proposal to create a blacklist of high-risk airports following mail bomb plots from Yemen and Greece but may instead draw up a "not so clean" list...

EU interior ministers decided to create an ad hoc group that will explore ways to beef up security in the wake of the discoveries of booby-trapped packages that originated in Yemen and Greece.

German Interior Minister Thomas de Maiziere proposed to his counterparts a five-point plan that included the creation of an airport blacklist and other ways to increase the scrutiny of suspicious parcels.

"There was no agreement that there should be blacklist of some countries," Belgian Interior Minister Annemie Turtelboom, whose country holds the rotating EU presidency, told a news conference after the ministerial meeting.

The EU has a blacklist of unsafe airlines that are banned from flying in the 27-nation bloc but it does not have such a list for airports.

The ad hoc group will look into the possibility of creating a check list of airports that are "clean" and "not so clean" in order to know if packages from those places need extra scrutiny, she said.

"We need to develop a risk analysis and determine which types of packages are always controlled," Turtelboom added.

A set of measures will be proposed to a joint meeting of interior and transport ministers on December 2, which was not previously scheduled, in order to find a "common standard" for the European Union.

Germany, France, Britain, Belgium and the Netherlands unilaterally decided to ban all air freight originating from Yemen after printer ink cartridges stuffed with a hard-to-detect explosive were uncovered in Dubai and Britain.

The Yemen bombs were blamed on a branch of Al-Qaeda, while the much less dangerous parcels from Athens were allegedly sent by a far-left Greek fringe group.

Germany is particularly sensitive to the threat after a parcel bomb from Greece was seized at the office of Chancellor Angela Merkel last week. One of the parcel bombs from Yemen was found in a British airport after it transited through the western German city of Cologne.

Source: AFP

Berlin offers nights on magic mushroom

Catherine Deshayes — 25/10/2010 18:41:00

Visitors to Berlin's Museum for Contemporary Art can book themselves a night in an installation created by artist Carsten Hoeller at a cost of 1000 euros as of November 5...

The installation, which includes a floating hotel room on a platform shaped like a mushroom, gives guests an "opportunity to dive into the world of soma," the museum said.

Soma is a mythical drink with powers to heal, enlighten and provide access to the divine, according to the beliefs of Vedic nomads in northern India during the second millennium BC.

It is no longer known what soma was made of, but research suggests the fly agaric mushroom, more popularly known as "magic mushrooms," may have been the ingredient responsible for its effect. This provided Hoeller with the inspiration for his fantastical installation.

The exhibition, which explores how to achieve enlightenment and the role given to science and myth in society, will be open until February 6 next year.

Source: Reuters

Major Berlin tourist attraction opens

Catherine Deshayes — 22/10/2010 13:37:00

Hitler and the Germans, an exhibition in Berlin's German Historical Museum which investigates the society that created Hitler, has already seen more than 10,000 visitors walk through its doors since opening last week...

Rudolf Trabold, a spokesman for the museum, said there were 4,000 visitors to the exhibition on the first day alone.

People visiting the exhibition said they had waited as long as 1-1/2 hours to get in.

Ravi Nair, a 73-year-old Indian visitor, said: "I had to queue for about an hour but it was worth it. The exhibition should help people in democratic countries realise that their vote is very valuable."

Trabold said Hitler and the Germans was so popular because it was "the first exhibition to explain how a man who lived on the margins of society for 30 years, in Vienna's men's hostels, could become an almost mythical leader of the German people.

"We are all affected by Hitler, so it speaks to all of us and helps Germans and foreigners to come to terms with the past".

Inge Lonning, a 72-year-old tourist from Norway said: "I thought the exhibition was very impressive. I wanted to see it because I experienced the German occupation of Norway as a small child, so it's not just history for me."

But not everyone was convinced there was something new to be learned from the exhibition.

"So much has been done about this period over the years, it was like, I knew this and I knew that," said Canadian Julien Cayer, aged 28. "I thought I'd find something new but I didn't."

There has been widespread concern in the German media that the exhibition could become a magnet for neo-Nazi admirers of Hitler, but Trabold said that although there had been some right-wing extremist visitors, they had not caused any problems.

Source: Reuters

Nuremberg courthouse becomes tourist attraction

Catherine Deshayes — 20/10/2010 07:18:00

The courthouse in Nuremberg where senior Nazis faced trial for war crimes will open as a museum and visitor attraction next month, officials have said...

The municipal courthouse - including courtroom 600 - was chosen as the venue for the post-war trials due to Nuremberg's hosting of the huge Nazi rallies in the 1930s.

The city is building an interpretation centre in the attic space of the courthouse to show visitors how international criminal justice began in the city. The tour ends in courtroom No. 600, where the trials took place.

Senior Nazis such as Hermann Goering, Rudolph Hess and Albert Speer all faced trial there in 1945 and 1946.

The venue will open on November 21 with an address from Benjamin Ferencz, one of the surviving original prosecutors.

Sergei Lavrov, Russia's foreign minister, also will give a speech. Lavrov and German Foreign Minister Guido Westerwelle will speak at the opening of the courtroom memorial.

After the war-crimes trials, conducted by an international panel of judges, US military courts tried additional Nazis in the courtroom until 1949. It then returned to use for ordinary German cases.

In recent years, the courtroom has permitted tourist visits, with up to 20,000 visitors a year doing the tour. The interpretation center will now make the site into a full-scale museum.

Source: AP

Controversial Hitler exhibition opens in Berlin

Catherine Deshayes — 18/10/2010 07:31:00

The exhibits speak for themselves: truncheons, knuckle-dusters and jackboots are among the brutal items on display at a new exhibition called 'Hitler and the Germans' in Berlin...

While lots of memorabilia is on show, from SS and Gestapo uniforms to a sideboard from Hitler's office, the exhibition shows how all levels of German society -- media, industry, the church, schools -- built up the Hitler cult in the 1930s and clung to it through World War Two until defeat was imminent.

Some media have portrayed the show opening on Friday in the German Historical Museum as a taboo-breaking first exhibition on Adolf Hitler himself. But the curators are at pains to stress that their focus is on the society that created the dictator.

'We don't want to focus on Hitler as a personality,' said Hans-Ulrich Thamer, curator of the exhibition subtitled 'Nation and Crime', at a media preview on Wednesday.

'We want to look at the rise of the regime, how it operated in power and how it fell, and the tremendous destructive potential that National Socialism unleashed,' he said.

The show is housed in a modern annexe behind the museum on Unter den Linden -- the boulevard that Hitler stripped of the linden trees that gave it its name - with no advertising, in deference to German law forbidding the display of Nazi symbols.

But inside the viewer is immersed in a world of propaganda ranging from cigarette packets with the swastika, complete with collectible uniform cards, to a handcart for selling the party paper, 'Voelkischer Beobachter'.

After the exhibits document the construction of the Nazi state, with its industry, autobahns and folksy celebrations of Hitler, they also reflect the growing racial hatred and discrimination.

One poster shows a mentally disabled boy beside a muscular blonde athlete and warns of the demographic dangers 'if retards have four children and the able-minded have just two'.

Then come displays of the yellow stars the Nazis forced Jews to wear and the striped concentration camp uniforms worn by some of the 6 million Jews murdered in the Holocaust and other Nazi victims. Among them is a tiny child's uniform from the camps.

After chronicling Hitler's downfall, the show touches on the post-war discussion of Nazism in German society, noting that the top-selling news magazine Der Spiegel put Hitler on its front cover no fewer than 46 times between 1949 and 2010.

'Since the 1990s not a single year has gone by without a Hitler portrait on the cover,' the curators said.

The final exhibits mention the fascination of neo-Nazis with Hitler memorabilia and displays anti-fascist logos.

Thamer was asked about the danger the museum could lure neo-Nazis eager for a look at Hitler memorabilia. Those sort of people, he said, don't go to museums.

Source: www.dailymail.co.uk

German banks take the lead in big UK property deals

Steph Engall — 04/10/2010 12:44:00

According to a report released at the EXPO property trade fair in Germany, German banks are the most active in top-end UK commercial property deals, representing nine in a list of 12 banks willing to finance larger transactions...

The 12 lenders, which include Deutsche Bank and Aareal, are those that have made large loans in the last six months totalling at least 100 million pounds, property adviser Savills said in the report.

Other German banks on the list are Bayern LB, Deutsche Pfandbriefbank, Deutsche Postbank, DG Hyp, Eurohypo, Helaba and WestImmo, with UK banks Barclays and RBS and Spain's Santander making up the difference.

Banks are also fighting over a scarce amount of deals in prime properties, mainly in central London, popular with institutional buyers due to the security of their rental income and the prestige factor, Savills said.

"There has been a reduced volume of properties coming to the market, and often those prime assets that lenders would like to lend against are being snapped up by non-debt-backed purchasers ... leading to a scarcity of opportunities for lenders," said William Newsom, UK head of valuation at Savills.

The report said other large UK banks with existing property loan books, such as HSBC and Lloyds Banking Group, have also been more active in working with existing customers and restructuring their loans.

Barclays, the fourth-largest UK bank, told Reuters last week it has renewed its focus on commercial property, bringing real estate investment and corporate bankers under a single banner with a view to luring clients from its UK peers.

Source: Reuters

Fines to lessen Euro economic imbalances

Steph Engall — 29/09/2010 14:44:00

Under European Commission proposals to lessen the economic imbalances, countries in Europe could face fines for uncompetitive wages or house prices...

Countries that ignore recommendations to strengthen their competitiveness could be fined as much as 0.1 percent of gross domestic product, a senior commission official told reporters in Brussels today.

The penalties, which Ireland or Spain might have faced on the eve of the financial crisis, will be part of a "credible sanctions regime" to be proposed tomorrow, the official said on condition of anonymity.

With Ireland's deteriorating public finances looming as the euro's next test, the proposals are designed to plug holes in an economic management system that in May forced European governments to offer 860 billion euros ($1.2 trillion) in loans and pledges to blunt speculation that the currency union might break up.

Penalties for imbalances such as outsized current-account deficits would be imposed "asymmetrically" on weaker economies, such as Portugal or Greece, the official said. Germany, with its trade surpluses, wouldn't be penalized for being too competitive.

The official didn't spell out how imbalances would be judged. While house prices will be one component of a planned competitiveness scoreboard, Europe-wide property-price statistics are not yet reliable enough to be used for "legally binding purposes," the official said.

The proposal will require approval by European governments and the European Parliament. The commission hopes it will take effect by mid-2011, the official said.

Source: Bloomberg

Carlyle buys budget hotel chain

Steph Engall — 29/09/2010 14:42:00

US private equity firm, Carlyle, has bought B&B Hotel Group for €480m from European investment firm Eurazeo...

B&B Hotel Group, which launched in Brittany in France in 1990, is at the "high end" of the budget hotel sector attracting business and leisure travelers and has a total of 16,162 rooms across France, Germany and Italy.

Carlyle intends to expand the company by investing in the refurbishment of current hotels and stepping up the hotel opening programme across Europe. This will include expanding further into France as well as upping its presence in Germany where it only has 34 properties at present.

It will also open new hotels in Italy and expand into new territories such as Poland, Portugal, The Netherlands.

Franck Falezan, managing director at The Carlyle Group, said: "B&B has high customer satisfaction and has had strong market performances and strong business resilience during the downturn. We are confident in the continued high growth potential of the company in existing and new European markets. In partnership with our experienced real estate team and B&B's excellent management team, we look forward to helping B&B reach its full potential."

The real estate fund has recently bought the £671m White Tower portfolio and announced its planned investment into the London student housing market.

Source: Property Week

France and Germany tipped for commercial glory

Catherine Deshayes — 25/08/2010 07:25:00

France and Germany have been tipped as hotspots for commercial property investment by Capital Economics...

Ed Stansfield, a property economist at the firm, said that France, along with the Nordic countries, stands out in terms of economic conditions and pricing.  

This means investors could be advised to keep an eye out for Midi-Pyrenees property listings and Provence-Alpes-Cote d'Azur property for sale.  "Germany, from a purely top-down macroeconomic performance point of view, is going to be one of the best performing economies in Europe over the next couple of years," Mr Stansfield added.  

"A lot of the data would suggest that the correction was very modest and therefore there is not a lot of potential for an upswing but, as a solid income producing investment, I think German property has got some attractions as well."  

Mr Stansfield added that investors should be wary about buying property in nations which have an unstable economy at the moment.  

Recent research by the Royal Institution of Chartered Surveyors highlighted that real estate professionals in 14 out of the 25 nations it surveyed thought that the number of distressed properties coming to the global commercial property market will continue to grow over the next three months. 

Source: www.propertyshowrooms.com

EU commercial investment rising

Catherine Deshayes — 21/07/2010 07:28:00

European commercial real estate investment turnover reached €23.5 billion in the second quarter of 2010, a 15% increase on the €20.3 billion transacted in the first three months of 2010, according to the latest data from CB Richard Ellis (CBRE)...

Investment turnover rose despite the stress factors emerging in the broader capital markets, such as the sovereign debt crisis and the introduction of austerity measures by many European governments, the report shows.

Investors continue to predominantly focus on the core assets, predominantly at the prime end of the market, with the largest, most liquid markets seeing the most activity. As property investors' concerns over issues of sovereign debt grew during the period a flight to quality seems to have intensified even further, it points out.

In the second quarter investment activity remained concentrated in the UK, Germany and France, which together accounted for 62% of the European investment total. France saw the highest growth of the three markets, with a quarter on quarter increase of 46%. The UK market saw an increase of 24% in investment activity.

Of the 27 markets covered in the report some of the smaller European countries, such as Austria, Ireland and the Czech Republic, reported the highest quarterly increases, albeit from a very low base.

However, whilst not yet fully reflected in the level of the actual deals closed, Poland and the Nordic region, Sweden in particular, are starting to emerge as a focus of strong investor demand.

‘The increased interest in the Polish and Nordic markets should not be seen as a coincidence but as evidence that investors are recognising the robust fundamentals. In light of downward pressures in most markets, low government deficits and a consequent lack of government spending cuts, these markets look very favorable,' explained Michael Haddock, director of EMEA Capital Markets Research at CB Richard Ellis.

Another notable feature of the European investment market in the second quarter was the growing number of large deals. In Italy, for example, the €440 million acquisition of the Porta di Roma shopping centre by Allianz Real Estate accounted for a third of the country's activity in the period.

In some markets there has been a genuine increase in large deal liquidity. Germany stands out, with 13 €100 million plus deals reported in the first six months of 2010. This performance runs alongside the UK, which has been in recovery for longer and where 25 €100 million plus deals were reported in the first half of this year.

‘With a growing number of larger transactions in Europe, we are also starting to see an increase in cross border activity. This is already evident in Germany, where cross border investment grew to 44% of the market in the first half of 2010 compared to only about 10% in the second half of 2009,' said Jonathan Hull, executive director of EMEA Capital Markets at CB Richard Ellis.

‘The same is true of the UK, and Central London, in particular, where most buyers of €100 million plus properties have been international. Middle Eastern and overseas investors have been particularly prominent this year, concluding a number of large deals, including the purchase of Knightsbridge Estate in London for close to €660 million,' he added.

Source: www.propertywire.com

Germany: anger over new airline tax

Catherine Deshayes — 21/07/2010 07:26:00

German airlines reacted angrily yesterday to details of a proposed new tax on passengers leaving the country's airports that could boost ticket prices for long-haul destinations by 26 euros...

The planned tax, unveiled by the German government in June as part of a multi-billion package of belt-tightening measures, would add at least 13 euros to shorter-haul flights within Europe, according to a draft law.

"We reject this tax completely," Peter Schneckenleitner, a spokesman for German flag carrier Lufthansa, Europe's biggest airline by passenger numbers, said.

"For German passengers, it will definitely make travelling more expensive ... this will hit the German economy as a whole," Schneckenleitner added.

Citing independent studies, he estimated the introduction of the tax could lead to the loss of up to 10,000 jobs and cut passenger numbers by as much as five percent.

Joachim Hunold, head of Air Berlin, Germany's second-largest airline, also said passenger numbers would fall and that jobs would be lost.

When the plans were first revealed, the director general of the International Air Transport Association (IATA), Giovanni Bisignani, dismissed them as "the worst kind of short-sighted policy irresponsibility."

Wolfgang Mayrhuber, Lufthansa chief executive, also said at the time that the tax would be "an extra burden to slow us down."

The levy is set to run until a carbon-emissions trading scheme that has already been agreed comes into effect for air travel in 2012.

Berlin hopes it will bring in around one billion euros to its coffers.

Source: AFP

Travelling with children and animals

Catherine Deshayes — 14/07/2010 07:15:00

The newly revamped Lufthansa business lounge at Frankfurt Airport is claiming a world first with its dedicated children's area...

The JetFriends children's lounge, located in Departure Area B, has a kids' corner and playpen for young children and drawing tables, bean bags and computer games for older children. There is also a cinema with leather benches. It is connected to the main business lounge for parental access and supervision.

Lufthansa is also proud of its animal lounge at Frankfurt. The general manager of Lufthansa Australia, Kai Peters, says it is the most luxurious in the airline system and comes with its own resident vet so all creatures great and small will arrive at their destination in healthy condition. More than 14,000 household pets use the lounge a year. But it's not just cute carry-on animals that are treated to the first-class service; Peters says more than 1500 horses and other large animals pass through the facility annually.

Source: www.theage.com.au

Smokeless Oktoberfest

Catherine Deshayes — 09/07/2010 12:30:00

The Oktoberfest beer festival in Munich is set to become smoke-free following a referendum in the southern German state of Bavaria...

The anti-smoking camp attracted 61 per cent of the vote, but turnout was a low 37.7 per cent of the 9.4 million eligible voters.

The result will lead to new rules banning smoking in all pubs, restaurants and beer tents, without exception. Existing laws allowed smokers to light up in beer tents and pubs with special smoking rooms.

The referendum had sparked a furious debate. Those in favour of a total ban cite health reasons, and those against argued it was about freedom of choice.

Supporters hope a ban in Bavaria will lead to stricter rules across the country, where various loopholes in anti-smoking legislation have led to weak enforcement.

Smokers heading to this year's 200th anniversary of Oktoberfest need not leave their cigarettes at home, however. Authorities announced any potential ban would not be in force during the 2010 festival, which last year attracted 5.7 million visitors from around the world.

Source: AFP

Further trouble looms for Euro

Catherine Deshayes — 20/05/2010 09:44:00

Euro/dollar trades have hit a four year low of 1.2185 as the unexpected ban on naked short selling of certain financial stocks and credit-default swaps enforced by Germany's financial regulator has added to the lack of confidence surrounding the euro...

But Mark O'Sullivan, director of dealing at leading foreign exchange firm Currencies Direct, believes further falls in the value of the euro could be seen over the coming days.

Mark O'Sullivan said, "While politicians are still trying to blame speculators for the fall in the euro, it's the market's loss in confidence in these politicians' ability to implement the austerity measures needed domesticallythat is at the root of its decline in value.

"Germany's actions are little more than window dressing to please an electorate already unhappy with having to bail out their European neighbours. If anything the German actions could make the situation worse as liquidity dries up and banks stop lending to each other."

Rise in interest for German solar

Catherine Deshayes — 23/04/2010 11:00:00

There is an increase in interest among property investors for German solar energy investments as a feed-in tariff cut approaches, it is claimed...

Germany is one of the world leaders in solar energy but a cut off up to 16% is expected for most solar photovoltaic installations from 1st July 2010, significantly reducing the incentive for investment.

Solar photovoltaic (PV) panel manufacturers have been inundated with orders not only from domestic homeowners but also from businesses and investment groups with larger roof spaces and qualified installers have been working around the clock to fit the panels in time.

‘With the 1st July deadline fast approaching we are sourcing additional roof space in order to meet the serious demand for solar energy investments in Germany. Investors know that plugging in by this date will maximise their returns over the next 20 years,' explained Steven Worboys, managing director of Experience International who is marketing solar energy investments in Germany in the UK for the first time.

Feed-in tariffs (FIT) was first introduced into Germany in 1990 and required utilities to connect renewable energy generators to the grid and buy the electricity produced at a rate of 65 to 90% of the average tariff charged per unit to end-users. The model has been so successful in supporting the development of the renewable energy industry that is has been replicated all over the world, including the UK.

However, some 20 years later, the German government has decided that the feed-in tariff, currently at 32 to 43 eurocents/kWh, is over-subsidizing the renewable energy industry and costing the consumer too much so the FIT rate is to be reduced. The fall of up to a third in the production of solar panels and growth in cheaper imports, especially from China, has also influenced the decision.

By their very design FITs are intended to reduce over time and the cut is not unexpected, even if the double-digit nature is deemed somewhat severe by some. ‘The feed-in tariff has been integral in turning Germany into the largest and most successful solar energy producer in the world. It has installed 9 GW of PV capacity with government targets for 66 GW by 2030. The industry has a turnover of some €1.7 billion per annum, employs 20,000 people and analysts predict that solar energy can provide 25% of the nation's electricity by 2050, said Warboys.

With such marked progress to date and new government targets for renewable energy production being made, the imminent cut in FITs is certainly not the end of Germany's solar success story, he believes. ‘There remains a window of opportunity for investors to see returns of €21,501 net income in year one and 17% net ROI for years one to 20. Investment is from €50,000 and 90% non-recourse finance is available,' he added.

Source: www.propertywire.com

Flying high on beer

Catherine Deshayes — 13/04/2010 09:30:00

Airlines go to extraordinary lengths to attract premium-class passengers but it's unlikely too many have thought about using a beer hall as a lure...

The German airline Lufthansa has added a 30-seat beer hall to its recently opened and revamped business-class lounge at Munich Airport.

Draught beer from Munich's Franziskaner brewery is served, along with pretzels, sausages and meatballs.

The Lufthansa business lounge is one of seven lounges at Munich Airport, and it was ranked No.4 in the recent Skytrax World Airport awards.

Source: www.theage.com.au

'Unlucky horseshoe' of house prices

Catherine Deshayes — 26/03/2010 08:32:00

A report from the Royal Institution of Chartered Surveyors (RICS) has identified an "unlucky horseshoe of European countries" where house prices have yet to recover...

Last year may not have been a hot one for Europe's housing markets, but there are a cluster of countries, the UK included, who suffered a less chilly 2009 than others.

Norway (pictured) led the way with an impressive 12 per cent increase in house prices over the course of the year, according to the European Housing Review from the Royal Institution of Chartered Surveyors (RICS).

Fellow Scandinavian countries, Finland and Sweden, recorded price rises of eight and seven per cent respectively, while house prices in the UK saw a one per cent overall increase and a 10 per cent rise since their lowest point in April 2009.

Slightly cooler conditions were experienced in Germany, Italy, Netherlands and France, where house prices dropped between 4.0 per cent and 6.0 per cent over last year.

However, the worst chills were felt in Ireland, Spain, Greece, most central and eastern European countries, and especially the Baltic States where prices declined between 27.0 per cent and 53.0 per cent in 2009.

Geographically, noted RICS, these countries form "an unlucky horseshoe around the edges of Europe", and their housing markets could face difficulties for some time.

Source: www.findaproperty.com

Global house prices ‘still have room to fall’

Catherine Deshayes — 18/03/2010 11:06:00

House prices in the world's major economies, which last year were down an average of 5 per cent from 2007, may keep dropping, believes Prakash Loungani, an adviser to the International Monetary Fund's research department.

"The corrections thus far have not erased all of the excesses generated by the house price increases," Loungani wrote in the March issue of the IMF's Finance and Development magazine. "That leads to an uncomfortable conclusion: house prices in many countries still have room to fall."

Loungani didn't single out individual countries where homes may be overvalued. The article said prices would probably decline further because they remained well above levels seen at the start of the housing boom around 2000, and also because values were higher than rents and income, which "serve as long-run anchors" on the cost of residential real estate.

Loungani said that between 1970 and the mid-1990s, increases in home prices in 18 nations lasted about five years on average, and values climbed 40 per cent after adjusting for inflation. During that same 25-year span, declines lasted an average of about 4 years and prices fell about half as much as they rose, the article said. In contrast, the most recent global housing expansion lasted 41 quarters, almost twice as long as average, and prices rose three times as much.

"Because prices rose much more sharply than in earlier upturns," Loungani wrote, "their decline might eclipse those observed in the past"

Source: www.bloomberg.com

Baby-boomers spark tourism boom

Catherine Deshayes — 17/03/2010 08:00:00

From Japan to Germany, senior citizens make up a lucrative and fast-growing opportunity in the tourism industry, with deep pockets, disposable income and free time. But just don't mention their age.

"The over-50s constitute a big market," Sybille Zeuch from the German Tourism Federation (DRV) said at last week's ITB in Berlin, the world's biggest trade fair for the multi-billion-dollar global holiday industry.

"And the 'Best Ager', 'Silver Ager', 'Seniors' or '50s and over', call them what you like, are the perfect guests. They have strong purchasing power, are interested in culture and are used to travel," she told AFP.

But firms wanting a piece of this "grey market" face a major obstacle: how to attract seniors without them realising they are being aimed at because of their age.

"They are the hardest market to target," said Jean-Claude Baumgarten, head of the World Travel and Tourism Council (WTTC).

"The secret is to find a dynamic way to communicate, to make these people feel like they belong to a sort of club," he told AFP.

And the silver-haired tourists have little fear when it comes to choosing faraway locations for their holidays, said Thomas Graune, founder of German firm Studiosus, offering cultural trips for the 50 to 60 crowd.

"These people have increasingly exotic tastes. They've already seen Italy and Greece. Now they want to go to Ethiopia, Yemen or China," he said.

Volker Schmidt, from the German lobbying group Seniorenring complained that "some holiday firms only think of seniors when it comes to the low season."

However, with the baby-boomer generation approaching pensionable age and medical advances meaning people are staying healthy for longer, the market is growing quickly and firms are rapidly wising up to the potential.

"Happily, things are changing," said Schmidt.

Source: www.reuters.com

German banks show ‘strong lending activity'

Catherine Deshayes — 17/03/2010 07:56:00

The latest UK lending survey by Savills has shown there is an increasing desire for lending among banks, especially those from Germany.

According to the organisation, banks such as Deutsche, Bayerische Landesbank and Aareal are among the top 21 lenders for 2010.

The study lists institutions that are able to lend upwards of £30 million, with 60 per cent of the top ranked banks being German lenders.

William Newsom, UK head of valuation at Savills, stated: "In the late 1990s the development finance markets were closed for half a dozen years. In this cycle we have seen the markets reopen again after only two years albeit on cautious terms."

In addition, the market in the UK is defined by a lack of quality lending opportunities, Savills suggested.

Moreover, now might be a good time to invest in commercial property in central London, after CB Richard Ellis recently noted the capital's real estate market has shown a better level of resistance than many global destinations.

Source: www.savills.co.uk

IMF: Global decline 'may not be over'

Catherine Deshayes — 12/03/2010 11:35:00

House prices in the world's major economies, which in 2009 were down an average of 5 percent from 2007, may keep dropping, said Prakash Loungani, an adviser to the International Monetary Fund's research department.

"The corrections thus far have not erased all of the excesses generated by the house price increases," Loungani wrote in the March issue of the IMF's "Finance and Development" magazine. "That leads to an uncomfortable conclusion: house prices in many countries still have room to fall."

Loungani didn't single out individual countries where homes may be overvalued. The article said prices will probably decline further because they remain "well above" levels seen at the start of the housing boom around 2000, and also because values are higher than rents and income, which "serve as long-run anchors" on the cost of residential real estate.

Loungani said that between 1970 and the mid-1990s, increases in home prices in 18 nations lasted about five years on average, and values climbed 40 percent after adjusting for inflation. During that same 25-year span, declines lasted an average of about four-and-a-half years and prices fell about half as much as they rose, the article said.

In contrast, the most recent global housing expansion lasted 41 quarters, almost twice as long as average, and prices rose three times as much.

"Because prices rose much more sharply than in earlier upturns, their decline might eclipse those observed in the past," Loungani wrote

Source: www.businessweek.com

New plan for Eurozone stability?

Catherine Deshayes — 09/03/2010 09:52:00

The European Commission has confirmed that it may set up a version of the International Monetary Fund to bolster the eurozone's financial stability.

Germany and France are leading the move, part of a series of initiatives aimed at avoiding a repeat of the sort of financial crisis engulfing Greece.

The German Chancellor Angela Merkel has expressed cautious support for the plan. Ms Merkel called a European version of the IMF "a good and interesting idea", but warned that a new European treaty may be necessary to create it, and help prevent a repeat of the Greek crisis.

"We don't want to get back into such a situation, but our instruments are not adequate to deal with such a situation," she said.

BBC economics correspondent Andrew Walker said that although the idea of a European Monetary Fund (EMF) had been prompted by the problems in Greece, it could not be up and running soon enough to deal with that problem.

German Finance Minister Wolfgang Schauble said at the weekend that "for the internal stability of the eurozone, we need an institution that has the experience and power of the IMF".

Austerity plan

Economic and Monetary Affairs Commissioner Olli Rehn will inform the full commission executive on Tuesday about the talks on the EMF plan, said his spokesman, Amadeu Altafaj Tardio.

Mr Tardio also said that things were "happening quickly". "We are in discussion with the countries of the eurozone," he said. Full details of the EMF, and how the 16 members of the eurozone would fund it, might be ready by early June, he added.

Weighed down by a deficit more than four times the EU's limit, Greece has initiated a number of austerity measures, including sweeping tax rises and deep cuts in public spending.

Location, location, location. Or Is It?

Catherine Deshayes — 05/03/2010 11:03:00

Relocating to another country is a tricky business at the best of times but uprooting your entire family and dragging them across the pond could be a recipe for chaos in even the most organised family.

So what are the deciding factors for people choosing an area for their temporary home. Well that is easy - "Schools, schools and schools" - without missing a heart beat this is the reply given by Jo Parris who heads up the lettings division of Barton Wyatt in Virginia Water.

Jo and her team have the task of finding homes for dozens of corporate families a year. These families are often moving for the first time overseas and there are many things that will concern them but the biggest worry of all is taking their happy, contented children out of their safe and comfortable environment and sending them into the unknown.

Jo Parris goes onto explain "The best way to avoid too much trauma is to send them to an international school and Virginia Water is in the extremely enviable position of being able to offer two. ACS International Schools, Egham - also known as the American Community School and TASIS - another highly respected international school. Both are based within 10 minutes of Virginia Water and Wentworth".

She adds: "It is by no means just the Americans that are looking to send their children to these schools, a huge variety of nationalities are looking to use international schools which ensures they are surrounded by like-minded people. The house is sometimes almost really secondary."

Source: www.bartonwyatt.co.uk.

Mixed news for Euro house prices

Catherine Deshayes — 03/03/2010 11:00:00

Property prices will continue to fall in vulnerable economies in Europe but other nations are showing signs of recovery, according to a new report.

Five countries, including the UK, witnessed house price rises in 2009 - led by a 12% increase in Norway, the Rics European Housing Review found. The biggest falls were in the Baltic States, where prices dropped by between 27% and 53%. Low interest rates helped support a recovery in many countries.

Finland, Sweden and Austria - as well as the UK and Norway - recorded house price rises in 2009. The report concluded that low interest rates had helped to manage the decline and start a recovery in house prices in some of the major economies of the continent.

In Germany, the Netherlands, Italy and France, the fall in property values ranged between 4% and 6% in 2009.

"The shallowness of the downturn in core European housing markets has surprised many commentators. But Europe is not the USA, and the problems and policy responses have been different," said the report's author, Professor Michael Ball.

"Mortgage defaults have only risen modestly. Low interest rates and central bank support for mortgage markets have played key roles in bringing recovery."

However, he added, housing markets on the fringes of Europe - where mortgage loans can be in foreign currencies - still face "great uncertainty". Prices declined the most in Latvia, Estonia, Lithuania, Hungary and Ireland in 2009.

Source: bbc.co.uk

German investment skyrocketing

Catherine Deshayes — 19/02/2010 10:09:00

A vast majority of investors and companies believe the German real estate investment market will remain attractive in 2010, with the number of people sharing this view rising to 80% from 66% last year...

This is one of the key findings of Ernst & Young Real Estate's annual trend survey of some 100 companies and investors. However, over 80% of those surveyed believe the crisis has yet to bottom out in terms of demand for space, rents and payment behavior.

A transaction volume of approximately EUR 16 bn to EUR 18 bn is expected for commercial and residential properties this year. ' Although the transaction volume is set to increase for the first time since the beginning of the crisis, major commercial portfolio transactions and distressed sales are currently not anticipated,' said Hartmut Fründ, Managing Partner of Ernst & Young Real Estate GmbH. 'The market is still going through a period of consolidation.'

'Although borrowing volumes are up, property owners are being confronted with rising vacancy rates and falling rents,' said Christian Schulz-Wulkow, Partner of Ernst & Young Real Estate. In terms of segment, residential is popular: 'Residential property entails less risk and it has become a considerably more attractive proposition for institutional investors,' added Schulz-Wulkow.

Survey participants included banks, closed-end real estate funds, real estate stock corporations/REITs, institutional investors, investment companies, opportunity/private equity funds, insurance companies and residential real estate companies.

The importance of IPOs as an exit option is picking up again in 2010, the survey found. Following a significant decline in 2009 (5%), 13% of survey participants are now considering going public. Special funds will also play a major role as an exit option again in 2010. A narrow majority doubts that commercial portfolio transactions will return in 2010. 'We expect to see an increase in major commercial portfolio transactions in the second half of 2010 at the earliest, although probably not until 2011,' added Fründ.

The vast majority of survey participants believe that family offices and institutional investors, most notably insurance companies, special funds and open-ended funds, will continue to be key buyer groups in 2010. Compared with the previous year, only a minority of investors surveyed think it likely that sovereign wealth funds and banks will emerge as active buyers. Opportunity and private equity funds, real estate stock corporations and international funds are seen as the biggest seller groups in 2010. Non-property companies and the public sector will make occasional sales only.

Source: www.propertyEU.info

Lufthansa to strike

Catherine Deshayes — 18/02/2010 11:15:00

Pilots at Germany's Lufthansa worried about their jobs voted yesterday to stage their biggest strike since 2001, adding to turbulence in a European industry already under pressure from all sides...

More than 93 per cent of the 4500 pilots at the airline, one of Europe's "big three" with Air France-KLM and British Airways, opted to stage four days of industrial action starting at midnight on Monday (local time).

"All 4000 pilots working on those days are called upon to strike," union official Ilona Ritter said.

"Lufthansa management bears all the responsibility for this dispute."

Talks collapsed in acrimony in December, with the Cockpit union demanding a 6.4-per cent pay increase and commitments that pilots would keep their jobs as the firm shifts passengers to cheaper foreign affiliates.

The airline said that the union was also making a demand for greater say on management decisions, which "cannot be accepted."

"The union's call for strike action, despite numerous proposals on job security put forward by Lufthansa is entirely inappropriate," it said.

"Lufthansa will go to every length to minimise the impact of a stoppage on customers and passengers."

The strikes will also affect Lufthansa Cargo, one of the world's biggest freight carriers, and Germanwings.

The firm, which operated around 800,000 flights last year, said it has set up a hotline and is allowing customers to change bookings free of charge, or to give them train tickets.

European airlines have been fighting for survival for several years as they battle with the triple whammy of budget airlines poaching customers with low prices, soaring high fuel costs and the worst global recession in decades.

In response, they have sought to consolidate, as seen in Air France's mega-merger with Dutch KLM and BA's tie-up with Iberia, and by attempting to cut costs wherever they can, including by slashing jobs and levels of service.

BA is currently slashing almost 5000 jobs and has scrapped all free meals except breakfast on short-haul flights, Air France-KLM is cutting 2700 staff and Lufthansa is cutting overheads by a billion euros.

The airlines' pain is refusing to go away, however, with Air France-KLM last week reporting its fifth straight quarterly net loss and warning of more red ink as cash-strapped consumers stay away in droves.

British Airways only narrowly managed to avoid what would have been a devastating 12-day stoppage by cabin crew over the recent Christmas and New Year period, and more industrial action is in the pipeline.

Lufthansa itself saw sales slump over 13 per cent in the first nine months of 2009, the last figures available, with operating income sliding 76 per cent and warning a positive full year result was subject to "very considerable risks."

Lufthansa, which employs around 100,000 people, was hit nine years ago by the worst strike in its history that caused travel misery for passengers and cost the firm millions of euros.

"It's going to be around the same scale this time," the Rhein-ische Post cited an official at Cockpit as saying.

"Small warning strikes are insufficient. The differences are too fundamental this time."

Source: AFP

This week's exchange rate news

Catherine Deshayes — 08/02/2010 11:07:00

As expected last week, the Bank of England did not extend the quantitative easing programme in the UK, in a widely expected move that was good news for sterling. The news had already been priced in to the market, and the Pound's value peaked on Thursday before falling back against many currencies on Friday and over the weekend...

This week, there is not a huge amount of data out, so the best exchange rates for currency transfers will depend on a couple of key announcements. Tuesday sees the UK's latest trade balance figures, and Wednesday morning's quarterly inflation report is likely to affect the Pound, depending on the Bank of England's outlook for the economy.

The only European news of note is GDP on Friday, while in the States we have retails sales on Thursday, and there is a US bank holiday next week on Monday 15^th.

This week's economic calendar:

Monday 8^th

No major data

Tuesday 9^th

0700 - German CPI inflation

0930 - UK trade balance

Wednesday 10^th

0930 - UK industrial production

1030 - UK Bank of England quarterly inflation report & King's speech

1330 - US trade balance

Thursday 11^th

0030 - Australian unemployment rate

0815 - Swiss CPI inflation

1330 - US retail sales (Jan)

Friday 12^th

1000 - Eurozone GDP

Picture by Martin Kingsley

German topless sledging causes stir

Catherine Deshayes — 05/02/2010 12:28:00

Residents of the German ski resort town Oberwiesenthal are outraged over plans to hold a bare-breasted sledging event there this year...

Nude bathing on public beaches and Alpine hiking in the buff may rate as everyday Teutonic pastimes, but the outraged burghers of eastern Germany's highest ski resort draw the line at the nation's latest winter sport: topless tobogganing.

The new snow discipline proved hugely popular last year when women clad in helmets, boots, bikini bottoms and little else took to the slopes of central Germany's Harz mountains for a debut competition near the town of Braunlage. The event attracted a 12,000-strong crowd.

But plans to hold a similar competition next month in the east German ski resort of Oberwiesenthal have caused a furore.

"It is utterly sexist, it denigrates women by treating them as sex objects," complained Erika Zeun, a member of a local feminist group which is protesting against the event.

Mirko Ernst, 42, the town's mayor, said many of Oberwiesenthal's inhabitants also feared the event would tarnish the image of eastern Germany's most famous ski resort.

The town produced the legendary East German ski jump champion and triple Olympic gold medallist Jens Weissflog.

"A majority is against the naked tobogganing," he complained. "The good name of our town will be damaged."

Jochen Nske, a Leipzig property dealer who is promoting the bare-breasted sledging, says he has considerable support for his event, which will award €100 (NZ$198) in travel expenses for each team and a €300 prize to the winner.

The town council is scheduled to vote on whether to give the go-ahead by the end of the week.

"If they vote against me, I'll simply cross over to the Czech Republic and hold the event there," Mr Nske said.

Source: Independent

Hot investments: less known German cities

Catherine Deshayes — 04/02/2010 11:25:00

German cities that are not particularly well known but located nearer larger more famous municipalities offer useful characteristics in terms of real estate, it is claimed...

Places such as Fürth, Leverkusen, Offenbach, Mülheim an der Ruhr and Neuss that are located on the ‘hip' of the larger cities of Nuremberg, Cologne, Frankfurt, Essen and Düsseldorf, have impressively robust drawing power in terms of development, according to a report from GfK GeoMarketing.

They may be considered the underdog compared with their well known rivals but they have noteworthy characteristics which developers should take note of.

‘They don't simply possess the charm of the underappreciated. Rather, the facts show that these cities often have attractive location characteristics, significant untapped potential and deserve a better image in the eye of the public,' said Wilfried Weisenberger, head of GfK GeoMarketing's public authority and retail consultancy division.

They could be of particular interest to retail property investors, the report says, as they have considerable space and usually a substantially less developed city centre as a result of significant competition posed by the neighbouring city. So rents are lower and more enticing to business.

‘Thanks to their greater concentration of older buildings, Hip cities also provide more affordable housing than their larger neighbours. In addition, Hip cities play host to some truly unique cultural offerings,' said Weisenberger.

‘Far from being locations disadvantaged in some way, hip cities provide significant opportunities. Hip cities should embrace their strengths and strive to communicate with one another more effectively. The reality is that hip cities offer attractive commercial and cultural conditions that can offer prosperity amidst the shadows of their larger neighbours,' he added.

The report also says that these Hip cities tend to be more affluent than other cities of a similar size and boast more available retail space. As such, almost all fall among the top ten with regard to retail purchasing power.

‘Hip cities not only contribute purchasing power to the larger neighbouring cities but they also possess their own potential that retail can creatively tap,' said Weisenberger.

The sheer size of their larger neighbours often relegates Hip cities to the status of de facto satellite locations, a fact often lamented by residents, but this also positions them quite favourably with regard to retail opportunities, Weisenberger added.

‘For example, retailers must often pay three times as much for rent in the larger cities that border Hip cities. Also, Hip cities offer more available retail space, making them ideal testing grounds for well conceived, market driven retail concepts,' the report says.

‘Large retail parks have already realized the advantages offered by Hip cities. These retail developments target the potential offered by the populous neighbouring cities and their drawing power in the broader region,' it adds.

Source: www.propertywire.com

Aldi Travel off the market

Catherine Deshayes — 29/01/2010 10:15:00

German budget supermarket Aldi has stopped taking bookings on its travel subsidiary Aldi Travel after just one year of trading...

The company is set to review the packages on offer after admitting that an ‘increasingly competitive' travel sector had made it harder to offer market-beating prices - even though the holidays had proved popular with customers.

A press release sent to TravelMail said: "We have decided to withdraw the Aldi Travel service while we review our offer to ensure we continue to provide customers with the best value deals available.

"Aldi Travel proved popular with customers and sales have performed well throughout 2009. However, the UK travel market is becoming increasingly competitive and we are working in consultation with existing partners to make sure we can continue to offer market leading deals.

"All arrangements for booked holidays remain unchanged and customers will be able to relax and enjoy their holiday as planned. A customer service telephone number has been provided to enable customers to easily contact a member of staff to discuss their holiday."

Although the company had been selling holidays offered by third-parties for a number of years, Aldi launched its own travel business in November 2008 as it looked to take a lead in the budget holiday sector.

Within a week of the launch of its own travel website Alditravel.co.uk in January 2009 it had managed to become one of the top ten budget travel sites in the UK as customers flocked to its budget brand of holidays.

The German-based budget supermarket has said that the company will take bookings at a future date but cannot confirm when.

Source: www.dailymail.co.uk

McDonalds hits Checkpoint Charlie

Catherine Deshayes — 04/01/2010 11:03:00

McDonald's said on yesterday it planned to open a new outlet at Berlin's Checkpoint Charlie, completing the landmark's 20-year transformation from Cold War front line to money-making tourist hotspot...

The 120-seater restaurant will be opposite the Mauermuseum dedicated to the Berlin Wall that used to divide the city, and hopes to be selling its burgers, fries and other products from mid-2010, a spokeswoman said.

The 600-square-metre restaurant, on the site of where Soviet and US tanks famously faced off in 1961, is a "top location," the Bild daily cited the US fast food giant as saying.

Spokeswoman Christiane Woerle said that McDonald's, which has come to symbolise US capitalism more than any other firm, has applied for planning permission with the German authorities.

Checkpoint Charlie was the main crossing point for foreigners between East and West Berlin from the post-war division of the city until the fall of the Berlin Wall in 1989.

After the communist East German authorities erected the Berlin Wall overnight in 1961 as an "anti-capitalist protection barrier", the crossing point expanded over the decades to include several traffic lanes.

Twenty years after the fall of the Berlin Wall, the city is barely recognisable, having undergone such an architectural metamorphosis that visitors find it hard to tell what was West Berlin and what was East.

The area around Checkpoint Charlie is no exception, with the path of the Berlin Wall now marked by a line of cobblestones and only an open-air gallery showing tourists how the border crossing used to look.

It is a major tourist attraction none-the-less, with coach loads of visitors flocking to buy souvenirs and to pose in photos with enterprising locals dressed as Soviet and Allied soldiers, who also stamp passports for a fee.

The landmark is home to a reconstruction of a border booth behind sandbags as well as a replica white sign informing people they are either leaving or entering the American Sector, in English, Russian, French and German.

Above the hut there is a large photo of a Soviet soldier, and on the other side, as you head south down Friedrichstrasse into the former West Berlin, a US serviceman.

McDonald's is no stranger to opening in sensitive places, including in the same building as Prague's Museum of Communism, across the street from Windsor Castle in Britain - and in the US naval base in Guantanamo Bay, Cuba.

In Berlin, the Golden Arches logo will adorn a building currently occupied by a myriad of eateries including a sushi restaurant, a kebab outlet, a pizzeria and a Subway all collectively known as Snackpoint Charlie.

Berliners cited by Bild were on the whole pleased.

"I think it's great," said Alexandra Hildebrandt, 40, who runs the Mauermuseum. "Checkpoint Charlie symbolises the United States, and so does McDonald's. They go well together."

"McDonald's is definitely a gain for every local and tourist. Because the food here was rubbish," said Matthias Fischer, 39.

Source: AFP

German site launched

Catherine Deshayes — 16/11/2009 11:04:00

The German National Tourist Office has a new website, germany.travel. The site allows travellers to download e-brochures, interactive maps, videos, quizzes and games. There is also information on events, tours and accommodation...

The old site, germany-tourism.de, will remain active for the next few months.

Germany looks to US

Catherine Deshayes — 20/10/2009 11:05:00

Germany's biggest insurer, Allianz SE, is circling like a vulture ready to snap up real estate bargains in the US commercial property market as values continue to slide and banks move to foreclose on more distressed borrowers...

According to the latest figures from Moody's Investors Service, commercial property prices in the US have already dropped almost 39% from a peak in October 2007 but are still not quite low enough for Allianz who expect further falls.

‘The pricing isn't where it ought to be yet.

We think there are going to be some very attractive buying opportunities but they haven't happened yet,' said the firm's head if finance Paul Achleitner.

Allianz is looking for bargains in real estate and private equity to boost returns from its portfolio of more than $600 billion with buildings in New York and Boston at the top of its shopping list.

In the US commercial property owners are struggling to pay debts. Defaults have contributed to at least $1.6 trillion of credit losses and writedowns worldwide since 2007, and Achleitner says those losses will deepen before the market improves.

Analysts from Credit Suisse Group said that the volume of delinquent commercial mortgages jumped sevenfold to $22.4 billion last month. Defaults on US shopping malls, skyscrapers and hotels are expected to keep increasing, they said.

The problem is that borrowers who took out mortgages expecting rents and occupancies to rise but the worldwide credit crunch has hit hard and banks don't want to own the buildings so they are going to have to off-load them at some point.

‘The banks don't want to repossess because the moment they own it, it bears on their capital.

They're actually reorganizing the stuff, anything, as long as they don't have to take it on their balance sheet,' said one analyst.

In contrast the UK's commercial property market is recovering and delivered the largest monthly capital growth since June 2006, at 1.1%, according to the Investment Property Databank Monthly Index for September.

While the monthly capital growth figure is the largest in more than three years, it was contained by continued falling rents.

Yield impact, which measures the influence yield movements have on capital values, was 1.75%, the strongest positive figure since December 2005.

All commercial sectors delivered positive capital growth for the first time since May 2007, led by retail with 1.4%.

Industrial values rose 1.1% and office values increased for the first time since July 2007 with 0.8%.

All-property initial yields dropped for the fourth successive month to 7.7%.

Source: www.propertywire.com

Surf the net in the air

Catherine Deshayes — 14/10/2009 11:14:00

German flag carrier Lufthansa and Japanese electronics giant Panasonic have teamed up to offer passengers wireless Internet on long-haul flights from 2010, the airline said Monday...

Long-haul business passengers will enjoy services comparable "with those available at powerful hotspots or upmarket hotels," Lufthansa boss Wolfgang Mayrhuber said in a statement.

"The service will gradually become available on all Lufthansa's long-haul flights worldwide," the firm said.

Spokesman Michael Lamberty said that prototypes would be tested towards the end of this year, with the aim of rolling out the service on 50 long-haul planes in mid-2010.

Passengers will also be able to send text messages via mobile phone and transfer data via handheld communication devices like Blackberries or iPhones, he added.

While in-flight Internet is fairly common on domestic flights in the United States, it is still comparatively rare for airlines to offer the service on long-haul flights, Lamberty said.

Lufthansa withdrew a similar service at the end of 2006 after it failed to take off.

Source: www.theage.com.au

Oktoberfest flight ban

Catherine Deshayes — 29/09/2009 09:25:00

German authorities have banned all flights over Munich's annual Oktoberfest beer festival after a series of Islamic terror threats targeted Germany for its role in Afghanistan...

About six million visitors a year pack the massive tents that dot Munich's sprawling 31-hectare Theresienwiese beer garden during the 16-day festival known across the globe. This year's event began on September 19.

The ban - a measure normally reserved for high-ranking state visits - is to remain in place through to the end of the festival on October 4^th.

Islamic terror groups such as al-Qaeda and the Taliban have directed threatening videos and audio messages at Germany in the past two weeks as citizens prepared to vote on Sunday in national elections. The latest video, released by the Taliban late on Friday, included pictures of Oktoberfest and threatened attacks on Germany in revenge for its military presence in Afghanistan.

"Given the current security situation, we view a flight ban as necessary," the top security official in the state of Bavaria, Interior Minister Joachim Herrmann, said on Saturday.

Oktoberfest has been targeted in the past - Saturday's festival opened with a minute of silence to honour the victims of a bomb attack that killed 13 people and injured 200 others on September 26, 1980.

Every year, visitors down more than six million litres of beer and consume 500,000 chickens and 100 oxen at the festival. The Munich tourist bureau estimates the celebration brings roughly one million euros ($A1.69 million) into the city's coffers each year.

Source: www.theage.com.au

Germany hotting up

Catherine Deshayes — 22/09/2009 11:05:00

Newer property in top German locations such as Hamburg, Munich or Frankfurt represents a good real estate investment, according to a new report...

Although there is some turmoil and instability in the market in terms of transactions and prices and banks are still reluctant to lend, overall Germany has an exceptionally attractive chance-risk profile, says the report from Jones Lang LaSalle.

Low levels of liquidity in the real estate market and transaction levels are down and there is often a lack of clarity as to pricing levels, but certain property will always do well, the report points out.

‘Strong demand will still be observable for properties built in 1995 or later in top locations such as Hamburg, Munich or Frankfurt. In this market segment, regardless of the economic environment, only few or no price changes can be noted,' it says.

However there is less demand for non-modernised property that dates from the 1950s and 1960s, located in structurally-weak regions and with a considerable maintenance backlog.

‘These properties will not become more attractive to investors in the future,' it adds.

The report explains that between 2004 and 2007 demand for real estate was generated by the financing culture at the time which led to an extreme rise in property prices.

‘The financial crisis has triggered a painful recovery process in which real estate is once again coming to the fore.

Regardless, the German residential property market, the largest housing market in Europe, continues to be of interest for both national and international investors,' it says.

‘Compared to competing investments (fixed-interest securities, stocks or commodities) the residential property in Germany represents an opportunity with an exceptionally attractive chance-risk profile.'

But it also points out that currently many transactions that are occurring involve vendors who are more compelled to sell, or purchasers who will only buy at discounted prices. In addition, prices agreed during negotiations are frequently reduced prior to exchange of contracts as purchasers bring to bear their greater negotiating position and ability to complete transactions in the current uncertain market.

‘In this environment, prices and values are going through a period of heightened volatility whilst the market absorbs the various issues and reaches its conclusions.

As a result, there is less certainty with regard to valuations with the result that market values can change rapidly in the current market conditions,' it concludes.

Source: www.propertywire.com

Disney cruise

Catherine Deshayes — 10/09/2009 10:44:00

The latest ship from Disney Cruise Line, which offers travellers Disney-themed cruise holidays took a step closer to life on the ocean waves yesterday...

The keel of Disney Dream, one of two brand new ships being built by the company, was laid at a shipyard in Papenburg, Germany.

The liner will officially launch in 2011, closely followed by another new vessel, Disney Fantasy, in 2012.

Disney is investing heavily in what is a growing market. Combined the two ships will double the company's current capacity with each new liner boasting 1,250 cabins and a tonnage of 128,000. 80 blocks will form Disney Dream, with the first block weighing in at approximately 380 tons.

At the keel laying ceremony at the Meyer Werft shipyard in Papenburg, the Disney Cruise Line president Karl Holz commented: "Our fleet expansion will allow us to satisfy demand on both the East and West coasts of the United States while also giving us the flexibility to explore additional global destinations for our guests."

As is tradition in the maritime industry, a coin was placed under the keel for good luck. This being Disney, it was no ordinary coin but a 'Pixie Dusted' one.

What exactly is in store for guests has yet to be revealed but Disney promise a 'truly distinctive' experience when designs are unveiled in the autumn.

Both Disney Dream And Disney Fantasy will be based in Port Canaveral in Florida and itineraries for the first ship will be released next month.

Of the two existing Disney ships, Disney Wonder will set sail from LA in 2011 while Disney Magic returns to Europe next summer to sail in the Mediterranean and Northern Europe.

Source: www.dailymail.co.uk

A tall order

Catherine Deshayes — 26/08/2009 10:53:00

Visitors to a tourist attraction in Berlin have been making off with an unusual memento -- the 30 cm long tail of a Lego giraffe...

The Lego tail belongs to a six-metre tall model that has stood outside the entrance to the Legoland Discovery Center on Potsdamer Platz since 2007.

"It's a popular souvenir," a spokeswoman for the center said Tuesday. "It's been stolen four times now ..."

The tail is made out of 15,000 Lego bricks. It takes model workers about one week to restore it at a cost of 3000 euros, the spokeswoman said.

Source: www.theage.com.au