News

European commercial property cools down

Ivan Radford — Fri, 11 May 2012 12:21:00 GMT

Commercial property investment markets cooled down at the start of the year, according to Cushman & Wakefield.

The commercial real estate firm's report shows that investment in the European commercial property market in the first quarter of 2012 fell to its lowest level since Q1 2010, with volumes reducing by 31 per cent compared to the end of 2011. Annually, volumes also fell by 1.56 per cent in March, while foreign investors scaled back their activity, leaving domestic buyers to increase their market share from 35 per cent last year to 37 per cent.

Offices were the strongest sector over the year, with volumes rising 19% on Q1 2011 compared to a 55% fall for retail and a 35% drop for industrial. The main areas of growth in activity have been in the Nordics, Poland and Switzerland while France, Italy, the UK and the rest of Central Europe dropped back after a busier Q4 2011.

Prospects for the rest of the year are being trimmed but there is still some confidence that increasing levels of stock and a growing need to act will lead to a firming in the market as the year goes by.

Michael Rhydderch, Head of Capital Markets EMEA at Cushman &Wakefield, commented: "It is not unusual for volumes to fall in the opening quarter - on average since 2006 they have dropped nearly 16% compared to Q4 in fact - but this is not just a seasonal lull, with volumes falling more and falling compared to the same period of last year - which in itself was no high point. There are still plenty of new investors coming into the market, with foreign buyers more dominant than domestic players over the last quarter. However, a shortage of stock, of debt finance and of confidence is holding the market back by perhaps more than we expected given the level of equity demand and the momentum at the start of the year."

The banking sector is the centre of attention but is pulling in different directions, on the one hand promising to feed investors with stock as deleveraging and asset sales pick-up, but on the other enforcing a strict diet due to the near freeze on new lending.

Rhydderch continued "Attention to detail is key in looking at all opportunities including loan portfolio and bank sales - with the property fundamentals vital to getting the financing and pricing right."

Retail has been the hardest hit sector by the slowdown in activity, with its market share dropping to just 22% versus an average of 32% during 2011. Offices, by contrast, have jumped up to 53% as against an average of 45% in 2011. Industrial has been relatively stable with an 8.3% share (8.9% in 2011).

Demand and activity patterns have been far from uniform around the region, with the Nordics, Benelux and parts of Eastern Europe holding up best. By country, Norway, Switzerland and Poland are up on Q1 2011 and notably also up on the busier final quarter of last year. Spain, Sweden and Finland meanwhile failed to match their performance of late 2011 but are at least ahead of the opening quarter of last year.

The Nordic region saw volumes rise 66% on the same quarter of last year as investors have been drawn to its better risk and growth profile and in particular a better relative standing on government debt. Sweden is generally the main target of interest and by far the largest investment market in the bloc but investors are looking further afield, with Norway in particular seeing increased demand and activity ramped up to its highest quarterly level since 2008 in Q1.

Markets such as Belgium, the Netherlands, Germany and Russia have been relatively solid meanwhile while France, Italy, the UK, Portugal, Czech Republic, Hungary and Slovakia all saw marked falls. Parts of the CEE market in particular have been hard hit by a shortage of debt finance but a lack of prime stock has also held investors back. That should change as the year progresses however, and notably so in Poland, as a range of retail and office opportunities are coming forward.

Interestingly, despite an increasing focus on 'core' assets, the big three: Germany, France and the UK, lost market share in the last quarter - dropping to 58.6% versus 62% last year, their lowest combined share since Q2 2009. However, while the core has lost out, so too has the fringe, with the GIIPS countries (Greece, Ireland, Italy, Portugal and Spain) seeing their market share drop to 4.3% as against 5.3% last year and over 11% in 2009.

Germany is the most buoyant of the three core markets meanwhile, albeit a reduction in larger deals masks this somewhat in the latest quarterly figures. The top five cities of Munich, Hamburg, Berlin, Dusseldorf and Frankfurt remain most in demand, while foreign buyers have been the key driver of growth, seeing their market share rise to 43% from 31% in Q4 2011.

Offices were the strongest area of activity in Germany, taking 44% of all monies invested, but as in some other markets, retail is being held back by a shortage of the right quality of stock for investors to buy. Alongside the UK, Germany dominated retail investment in the quarter, with the two accounting for 54% of all retail market activity. Russia was the only market coming close - with €942mn invested versus €1.1bn in the UK and €1.5bn in Germany. Belgium and Poland were the fourth and fifth largest markets, with €272mn and €211mn invested respectively.

While the UK may have lost its retail crown to Germany, it remains far and away the largest European office market - with €5.1bn invested in the quarter versus €2.4bn in Germany, €1.3bn in Norway, €1.2bn in Sweden and €0.9bn in France.

Market concentration is however slightly lower in the retail sector, with the top five accounting for 79.8% of all trading versus 81.3% in offices in Q1. Thanks to the huge dominance of the UK, the top five industrial markets have a yet higher market share of 84%, with the UK (€1.1bn) followed at some distance by Germany (€352mn), Switzerland (€180mn), Poland (€97mn) and France (€92mn).

Looking forward, David Hutchings, Head of European Research at Cushman & Wakefield, commented: "At the beginning of the year we forecast investment would increase in the second half after a slower start and hit something like €24bn for the year. That forecast is now under threat with at least some of the Q1 underperformance not expected to be made up.

"For now however we remain confident of better activity levels in the months to come and have only edged down the forecast to €120bn. Nonetheless there are clear and growing risks that this adjusted forecast will not be met - particularly if economic confidence wanes and improvements in the outlook for the sovereign debt crisis recede any further."

Commenting on demand, Hutchings continued: "Secure yields are fundamentally attractive in a world of low interest rates and now slowing inflation. Income growth will undoubtedly be slower in the year ahead however and negative in some cases as less productive property is found out. However returning business confidence - hopefully - and less new development, should limit the downside threat to rents and occupancy ahead of an eventual return of more robust economic growth in 2013."

Germany bubble fears blown up by rising prices

Ivan Radford — Wed, 09 May 2012 13:07:00 GMT

Rising house prices are inflating fears of a German property bubble.

Property prices increased by 2.5 per cent in 2010, according to a recent report from Moneyweek, a small amount compared to surges at the peak of the European housing boom but they continued to rise by 5.5 per cent in 2011, twice the rate of inflation.

Major cities also saw values jump by up to 10 per cent, as investors continue to be attracted to Germany's stable economy. While banking regulations remain strict, drawing further buyers in, the increasing values have ironically fuelled fears that the country could witness a similar boom and bust to the bubble that occurred 20 years ago.

"Right now we see money fleeing from other assets into real estate," DekaBank chief economist Ulrich Kater told Reuters this week. "That led to the first movements of prices and those movements can take on a life of their own."

But experts are keen to highlight the difference between the two bubbles: whereas demand in the 1990s was driven by tax breaks, the current boom is fuelled by interest not just from overseas investors but also local residents, as an increasing number of people choose to live alone. Perhaps more importantly, the aim of investors is to save, not to profit from rising prices; indeed, further increases in values would only reduce the current yields on rental property.

One estate agent, Reuters reports, predicts price increases will slow down in 2012, while DZ Bank predicts them to grow at a smaller rate of 2 per cent. The bubble, it seems, is not set to burst.

"We have to get some houseowners' expectations down to realistic pricing," commented an Austrian investor, "but it's working and we are therefore back in investment mode."

IKEA accused of using East German prisoners for labour

Ivan Radford — Thu, 03 May 2012 11:29:00 GMT

IKEA has been accused of using East German prisoners for labour.

The Swedish company was alleged to have used political prisoners from the former communist state to manufacture furniture by a TV documentary, which was broadcast for the first time last night.

The charges include the allegation that the furniture manufacturer worked with the Stasi, East Germany's secret police, based on information that broadcaster SVT said had been found in old police files.

"We are taking this matter very seriously," IKEA spokeswoman Jeanette Skjelmose responded, announcing that the company would conduct its own investigation into the controversial suggestions.

Ikea has previously used former communist countries for labour, according to The Independent, with another German documentary (broadcast on public TV Station WDR) claiming that over 60 workshops in East Germany were used for building IKEA products.

"So far there are no indications that we would have asked prisoners to be used in manufacturing or known about it," Skjelmose added.

Germany set for bumper residential year

Ivan Radford — Mon, 16 Apr 2012 12:49:00 GMT

2012 is going to be "a bumper year" for residential property in Germany, according to Savills.

The next 12 months will see investment groups inject money in the country's residential real estate on a large scale, predicts the international agent, as the population of renters provides opportunities for landlords to profit.

"For the first time since 2007, residential packages of 10,000 units and more are being sold again to a significant extent in Germany," Savills Managing Director of Corporate Finance told OPP. "2012 is set to be the year for big deals."

But portfolios of fewer than 300 units continued to see strong demand, accounting for over three-quarters of sales in the first quarter of 2012 - consistent with levels seen at the end of 2011.

Last year's trend for overseas buyers also continued, with 78 per cent of activity involving domestic investors: a change from the property boom pre-2008, when foreign buyers bought up large portfolios of German real estate.

Berlin dominated the market at the start of the year, with almost 6,000 units (approximately 12 per cent) sold in the capital. But with large-scale deals anticipated by Savills in the next 12 months, the residential boom is expected to sweep across the whole country.

In total, €2.92 billion worth of real estate purchased in the first three months of 2012, already accounting for 60 per cent of the total amount sold in 2011.

Video - IMF chief: Recovery still fragile, despite improvement

admin — Wed, 04 Apr 2012 09:58:00 GMT

The head of the International Monetary Fund, Christine Lagarde, is keeping up the pressure on world leaders and urging them not to become complacent.

Despite signs of financial stabilisation in the eurozone and stronger growth in the United States she said the job must be finished.

"The recovery is still very fragile, the financial system in Europe is still under heavy strain, debt is still too high, both public and private, stubbornly high unemployment is really straining the seams of society, and - to add to the list, as if it wasn't enough, oil prices are clearly another cloud on the horizon."

Speaking at a newspaper industry event in Washington DC, the IMF Managing Director said Europe was in the most fragile state and the world's developed nations should "increase their firepower".

To boost growth, countries should make use of monetary policy, especially with no real signs of inflation in advanced economies, she said.

She was also critical of the United States high public debt levels, currently exceeding 100 percent of gross domestic product. "The country needs a stronger push to fix its public finances in the years ahead, including by curbing the growth of entitlement spending and raising more revenue," Lagarde said.

Watch the full speech on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/imf-chief-recovery-still-fragile-despite-improvement/

Residential property providing best returns for investors in German markets

admin — Mon, 02 Apr 2012 11:28:00 GMT

Residential property is providing the best investment returns for the German real estate sector, according to the DIX German Property Index for 2011 published by IPD.

The total return before tax and financing for all German properties reached a record level in 2011, said Daniel Piazolo, managing director of IPD in Germany.

The DIX German Property Index for 2011 stood at 5.5 %, representing the highest return of this millennium and exceeding industry expectations, which had been reflected in a total return forecast of 4.8% for the year.

Source: PropertyWire.com

Eurozone rescue inflates German property prices

admin — Fri, 30 Mar 2012 07:10:00 GMT

Europe’s efforts to keep its single currency together are risking an inflationary boom in Germany, sending residential property surging to levels not seen since the country’s reunification, according to Pimco.

Source: eFinancialNews.com

Munich hosts long-awaited property boom

admin — Fri, 30 Mar 2012 07:05:00 GMT

In the elegant streets of Bogenhausen, a sought-after part of Munich, Konstantin Wettig provides a stark example of Germany’s property boom.

Six years ago Mr Wettig, a managing partner at the offices of upmarket estate agents Engel & Völkers , recalls selling a house nearby for just under €3m. When the same property came back on the market last year, Mr Wettig’s agency sold it again – but for more than twice the price.

A 100 per cent increase in just six years might seem redolent of the pre-crisis excess in other eurozone markets that quickly turned to ruinous bust. But Mr Wettig has a bright message, saying Germany’s property market is “going to keep booming”.

“Germany is only going to get stronger. There is trust and confidence here,” he says.

Source: FT.com

Property bargain hunters eye Euro opportunities

Ivan Radford — Thu, 29 Mar 2012 12:26:00 GMT

The growing value in European property was underlined after the biggest US real estate investment trust (Reit), Simon Property Group, completed its acquisition of a 28.7% stake in Klépierre, a French property company, for an estimated $2 billion (£1.2 billion).

Simon Property paid a 20% premium for the equity from the French bank BNP Paribas, which owned around a quarter of the Paris-based Reit.

The deal highlights a number of reasons why listed European property companies have become an increasingly attractive proposal for the world's biggest investors.

‘It is interesting that the most respected property company in the world has identified value in European Reits. Even though Simon Property bought it at a premium, it still paid a 10% discount for the underlying asset values,' said Alex Ross, fund manager at Premier Funds.

‘Today, there is no better opportunity to pick up quoted European real estate stocks because they are trading at discounts to underlying value of 10% to 30%. You are not just buying assets at a good discount, you are buying the best assets.'

Source: Citywire

RICS: Europe in housing market 'agony'

Ivan Radford — Mon, 26 Mar 2012 11:54:00 GMT

Europe is in the midst of "prolonged agony" of housing market decline with no obvious end in sight, a report by surveyors has claimed.

The downturn began five years ago, so had lasted longer than a typical 12 or 18-month dip, the Royal Institution of Chartered Surveyors (Rics) said. The Irish Republic and Spain saw house price falls of 17% and 10% respectively in 2011, compared with 2010. Austria, France, Switzerland and Norway all saw prices rise by 5% or more.

The Rics European Housing Review suggested that the future of the continent's housing market depended on the scale of the economic downturn. The future for the housing market would be "grim" if the eurozone crisis remained unresolved or came to a "painful conclusion", it warned. Prices in the Irish Republic had already fallen by 50% from their peak, the report said, with a host of new homes having been built before prices crashed.

"Not only did Ireland, Spain and Cyprus all have substantial price booms prior to their crashes, but they also had huge building booms as well," the report said. "Each one in consequence is still suffering from severe new supply overhangs." The market across Europe could survive relatively unscathed if there was only a moderate economic slowdown, the report added. Yet, so far, there were "special reasons" for some countries being at the top of the house price growth league.

Prices in France had been boosted by stimulus packages. Iceland had bounced back slightly from a massive fall in house prices. Meanwhile, price rises in Norway had not been matched by the other Nordic countries. Previous strong price growth ended in 2011 in Finland, Sweden and Denmark, the report suggested.

Source: BBC

Germany on a different track

admin — Wed, 21 Mar 2012 09:05:00 GMT

Europe's low interest rates are fueling rising house prices in Germany, presenting the region's policy makers with a fresh challenge in their fight to restore its economic health.

Signs of a property-price boom in parts of Germany are becoming a headache for the European Central Bank, which has for the past two years struggled to fashion a single stance on interest rates and support for banks that fits countries as disparate as depressed Greece and mighty Germany.

While much of the euro zone is dealing with high debts, recession and burst credit bubbles, the bloc's biggest economy, Germany, faces an altogether different problem: Its real-estate market is showing signs of froth.

Germans don't share the "American dream" attitude toward homeownership of U.S. households. Germans have long tended to rent rather than own, and Germany has a low percentage of home ownership compared with the U.S. and U.K.

Source: The Wall Street Journal

German bunkers become homes

Ivan Radford — Mon, 19 Mar 2012 10:24:00 GMT

German architect Rainer Mielke lives in a luxurious, light-filled penthouse atop a Nazi bunker that his elderly neighbours remember sheltering in during World War Two.

The architect has pioneered the art of converting the grim structures into bright living or working spaces, and his work is set to increase as Germany ramps up sales of the above-ground forts, originally designed as air-raid shelters.

"At the beginning, the authorities thought I was a bit daft," said Mielke, who spent six years in the 1990s begging the property office in the northern city of Bremen to let him buy the bunker he now lives in. They didn't think anyone would really want to live in a bunker."

It turns out Mielke was on to something. After early tentative sales efforts, Germany is now stepping up a campaign to sell the structures and this month launched a competition for conversion ideas.

But there's also a catch: nearly all were built with forced labour. And as bunkers become hot property, critics warn against treating them like any other real estate without acknowledging their past.

"The advantage is that you can plan freely because there are no supporting walls," said Mielke, who converted the entirety of his first bunker once it was decommissioned. "The disadvantage is that it's quite difficult and requires a lot of special knowledge."

"There's a premium for bunkers in nice districts where you just don't have much choice otherwise," said BIMA's Gerd Oligschleger. He said Germany was stepping up its sales and hoped to auction off the remaining 170 in the next few years.

Source: The Province

German market set for international investor surge says EC Harris

admin — Wed, 29 Feb 2012 09:05:00 GMT

Germany’s property market should brace itself for a surge in international investment according to a new study.

Global build-asset consultancy EC Harris’ “German Real Estate Market Trends: The Investor Perspective” report found that 70% of investors were planning to increase their level of investment this year.

59% of investors were also confident that Germany would remain Europe’s most stable economy over the next few years.

The report, which compiled data from several focus interviews with national and international investors, also found a preference for projects in Frankfurt and Munich, with 65% of respondents showing a willingness to invest in the cities.

Source: OPP.org.uk

House prices down by a third since credit crunch

admin — Tue, 28 Feb 2012 13:29:00 GMT

House prices in the UK fell by 1 per cent in 2011 and by almost a third since 2007, according to the RICS European Housing Review 2012.

This places the UK on a similar footing to several other European nations, although Germany, France, Switzerland and Norway all posted rises of 5 per cent or more.

Ireland and Spain experienced the most significant falls, with drops of -17 per cent and -10 per cent respectively.

Since mid-2007, overall house prices in the UK have fallen by almost a third. This is more significant a drop than seen in Spain (-27 per cent), Italy (-14 per cent), Germany (-11 per cent) and France (-8 per cent), while Sweden and Switzerland have actually seen prices increase in the last five years.

Source: MortgageFinanceGazette.com

Top 10 most romantic homes

Ivan Radford — Tue, 14 Feb 2012 14:00:00 GMT

It's Tuesday 14th February, which for many means chocolates, flowers, wine and romance. But if, like TheMoveChannel.com, you're a more property-minded individual, then Valentine's Day means only one thing: the hunt for the world's most heart-warming piece of real estate. Here, then, to make housing sparks fly, are the top 10 most romantic homes around the globe.

1. Coco Chanel's Riviera Home, France

Photo credit: TopTenRealEstateDeals.com

Chanel No.5 may be gift-wrapped by some today, but Coco's villa was a far more romantic present. Located on the French Riviera, this 10,000 square-foot property - co-designed by her - has seven bedrooms, seven bathrooms and was built for the fashion icon as a gift from her lover, the Duke of Westminster. It was put up for sale this week.

2. The Dancing House, Czech Republic

Photo credit: Aidan McMichael

Prague's Dancing House (built in 1996) may seem askew at first glance, but take a closer look and you'll spot a similarity to iconic Hollywood couple Fred Astaire and Ginger Rogers. Ginger leans casually into Fred's concrete structure, hugging around the waist in a rare architectural embrace.

3. The Playboy Mansion, USA

Photo credit: Brule Laker

It's impossible to talk about romance and houses without mentioning Hugh Hefner's Californian love nest. The property was purchased by the Playboy founder in 1971 for $1.2 million and has since expanded across the surrounding 5.3 acres of land, boasting a wine cellar, tennis courts, swimming pool, waterfall, a zoo and, of course, its famous residents. The original Playboy Mansion in Chicago, meanwhile, has since opened its doors to standard tenants and is now divided up into condos.

4. 800 Winnebago Court, USA

Photo credit: Zillow.com/Panoramio.com

800 Winnebago Court may not sound like a romantic address, but the town it belongs to certainly is. According to its listing on Zillow, the area used to be twinned with the nearby community Juliet. When the two places split, the village marked the break-up by renaming itself Romeoville.

4. The Empire State Building, USA

Photo credit: Archana Pandey

Home to many tenants, The Empire State Building is an iconic property for lovestruck couples everywhere. Is it the fact that they can now own a part of the once-tallest building in the world? No, it's the observation deck on the skyscraper's roof, a popular place for marriage proposals that has seen its reputation climb even higher as time goes by.

5. Schloss Neuschwanstein Castle, Germany

Photo credit: K4Dordy

The Neuschwanstein Castle has inspired many a dreamy gaze over the years. Built (and paid for) by Ludwig II of Bavaria, the German palace was intended in the 19^th Century to be a retreat for the King. Since his death in 1886, the building has been open to the public, eventually inspiring Disneyland's iconic Sleeping Beauty castle - and, as a result, the romantic dreams of countless young girls across the world.

6. The Old Post House, UK

Photo credit: Telegraph.co.uk / Greenslade Taylor Hunt

This Dorset cottage, situated near the river Piddle, is a cosy affair. Pick it up for £575,000 and snuggle next to its open fire before retiring to one of the four upstairs bedrooms and you'll be tickled pink with affection.

7. Rooftop Romance, Australia

Photo credit: Becks_fever

From street level, this Melbourne property appears to be a regular block of apartments, until you take another look from overhead - and experience a complete change of heart.

8. The Patrick O'Donnell House, USA

Photo credit: CNBC.com / Douglas Berlinsky

For those of a less Disney-inspired outlook, this South Carolina home should fit the Valentine's Day bill. Constructed in the 19^th Century by O'Donnell, the $6.85 million home inspired the character Melanie in the classic romantic film Gone with the Wind. It was intended for Patrick's fiancée but took so long to build that by the time it was finished, she had already married someone else. O'Donnell lived there for the rest of his life. He died alone.

9. Island Getaway, Cornwall

Photo credit: Telegraph.co.uk

If privacy is the key to a quiet night in, this unique property in Cornwall is guaranteed to make sure you're not disturbed. Situated on top of an island by a Newquay beach, the only way in and out of the house is a 100ft long suspension bridge - a fact that has had elderly couple Lord and Lady Long searching for a new owner since 2010.

10. One Night in Philadelphia...

Photo credit: Curbed.com

This condo in Philadelphia is your usual penthouse apartment. Fireplaces, wooden floors, the works. But if you're looking to impress your partner with a more extravagant gesture, take them up to see the rooftop cinema, where a 6' by 10' HD screen (with surround sound) awaits a happy couple. There's an outdoor kitchen and a city view, too. In short, the perfect date - every night of the week.

Ready to embrace a new property?

Fall in love with our listings of houses, apartments and other overseas property:

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

Video - Tegernsee, Germany – Three Travel Tips

admin — Fri, 10 Feb 2012 11:00:00 GMT

Hans Estner is a man who knows his way around: a former Winter Olympics biathlon medalist, he says people should enjoy the fun of cross-country skiing in the Bad Wiessee region, go to idyllic Wildbad Kreuth to see the traditional, ducal fishbreeding farm, or set off on snow shoes for a trip in the Tegernsee valley.

Watch the full travel guide on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/02/tegernsee-three-travel-tips-discover-germany/

Investment in German residential property portfolios surges

admin — Tue, 07 Feb 2012 13:50:00 GMT

Transaction volumes across German residential property portfolios of more than 50 units increased by 44% year on year to €6.12 billion in 2011, new research from CBRE has revealed.

The number of traded residential units also increased by 27% to around 92,000 units within 194 transactions, indicating that the market for large portfolios of over 1,000 units has regained momentum.

The demand for residential units in Berlin was particularly strong. The capital city traded around €2.3 billion and more than 32,300 residential units last year, which accounts for 37 per cent of the registered investment volumes and 37% of all residential units in Germany.

Source: Property Wire

Strong demand for German commercial property, research shows

admin — Thu, 26 Jan 2012 06:45:00 GMT

Transaction volumes for Germany’s commercial real estate market will exceed €20 billion in 2012 with continued strong demand from both domestic and foreign investors, it is claimed.

According to research by international real estate advisor Savills real estate worth €22.6 billion changed ownership in Germany in 2011, marking a 20% increase on 2010.

‘The final quarter of 2011 recorded the second best investment volume of the year at approximately €5.8 billion, showing little evidence in the investment market of a deteriorating macro economic environment,’ said Lars-Oliver Breuer, head of investment at Savills Germany.

‘Given a number of uncertainties it is difficult to provide an outlook to 2012 but what will be crucial is whether the situation in the financial markets stabilizes and if the eurozone succeeds in convincing investors of its stability,’ he explained.

Source: PropertyWire.com

Germany gets record foreign resi investment in 2011 says Patrizia

admin — Mon, 16 Jan 2012 13:05:00 GMT

2011 is emerging as a record year for the German residential market. More than 220 large-scale residential portfolios were sold to international investment groups during the year versus 171 in 2010, the Patrizia Immobilien Group told OPP this week.

These deals represented an investment volume of about €5.7 billion, global agency group Jones Lang Lasalle told OPP and "the most active buyers were institutional investors like listed companies, funds, banks, REITs, and fund managers."

Companies like this nearly €4.4 billion of the total spend.

And in leading commercial centres like Munich rents are also starting to reach new record levels.

Source: OPP.org.uk

Markets mixed on ratings cuts of eurozone countries

admin — Mon, 16 Jan 2012 11:55:00 GMT

European stock markets have opened slightly higher following falls in Asia after Standard & Poor's (S&P) cut the credit rating for France and a number of other European countries.

The main French and German indexes were up about 0.3%, while the UK's FTSE 100 was flat.

Earlier, Japan's Nikkei index fell 1.5%, South Korea's Kospi slipped 0.8%, while Australia's ASX lost 1.2%.

Analysts warn markets will be volatile until the eurozone issues are resolved.

Source: BBC

Record 2011 as Engel & Völkers smash €200m barrier on commission

admin — Thu, 12 Jan 2012 08:27:00 GMT

2011 was a record year for the Hamburg-based overseas property agency Engel & Völkers Group, with overall commission revenues topping €200 million for the first time.

The German group's international chain of residential property shops (of which there are nearly 500 around the world in total) "brought about a 19.4% rise in group commission turnover to €206.4 million," the company told OPP this week.

"High-end property in particular is becoming a preferred financial investment as a direct consequence of the uncertain financial climate and currency crisis in Europe," Christian Völkers (pictured), CEO of Engel & Völkers AG.

Source: OPP.org.uk

Germany to make getting a visa easier and faster

admin — Tue, 10 Jan 2012 08:40:00 GMT

Germany will ease its visa controls this year in a move expected to help thousands of people and companies from Russia and China seeking to do business in the European Union’s biggest economy.

‘I am pushing for a liberal visa policy which reflects Germany’s role in a globalized world,’ said foreign minister Guido Westerwelle.

The new rules are designed to simplify and speed up visa issuance by demanding fewer documents, making forms available on the internet and ensuring decisions are made within 72 hours.

Some of the administration will be outsourced and individuals, especially business people, will no longer be required to appear in front of German authorities in person.

Source: ExpatForum.com

Ice church is snow joke for Bavarian village

Ivan Radford — Fri, 06 Jan 2012 12:22:00 GMT

Photo credit: Der Spiegel

A church made of ice? It's snow joke for a Bavarian village, where an entire building was made out of the white stuff to celebrate Christmas.

The church, which reaches up to 65 feet, consists of 49,000 cubic feet of snow, but is not the first slippery structure to be created in the town of Mitterfirmiansreut. A century ago, the local residents found themselves snowbound and unable to reach the nearest church in the nearby town of Mauth. Instead, they built their own church in protest.

Now, the townspeople have been at again. Following two years of planning from restaurant owner Bernd Stiefvater, the village hired architect Alfons Doeringer to design the current snow church to pay tribute to that extraordinary Christmas in 1911.

"For me this is a really touching story of how people of faith can achieve anything," Stiefvater told Spiegel.de.

Construction on the property was scheduled to begin at the end of November last year, but when no snow arrived the project looked like it might be cancelled. Not to be deterred, the village postponed the development until 20 centimetres of snow had settled, in accordance with Doeringer's instructions. The building was finally completed at the end of 2011.

"Nothing in this project is routine. There were no standards and no norms," the architect commented. "That is an extremely heavy mass of snow, and people will be underneath it."

The finished structure cost an estimated €130,000 and includes its own 17-metre tower, as well as a main room, 26 metres in length, which contains sculptures, an altar and pews that can hold up to 200 people. The church was blessed by Dean Kajetan Steinbeisse on Wednesday 28^th December.

Interest in the venue has already started to snowball, with the village receiving an avalanche of booking enquiries. But while some ceremonies will be allowed, baptism and wedding requests have been given a frosty reception as the Catholic Church have ruled them out for theological reasons.

The church is only a temporary building, but with the German Institute for Economic Research predicting that the country's economy will escape recession this year and "return to solid growth in 2013" (according to TheLocal.de), property in Germany has never been a more solid investment.

Want to live in a winter wonderland?

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German housebuilding soars to record levels

admin — Tue, 20 Dec 2011 01:36:00 GMT

German house-building permits have soared to a record this year as investors put their money into bricks and mortar as a hedge against inflation and the EU’s sovereign debt crisis.

The number of permits leapt up 22% in the first nine of 2011 says the latest data from the German Federal Statistics Office.

“It's fear of inflation,” Heiko Stiepelmann, deputy chief executive officer for Germany's Construction Industry Association, said this week. “The strong rise is explained by a lack of profitable, and especially safe, alternatives for investing.”

A massive 27% surge in German building permits for “multi-family houses” in the first three quarters of 2011 is the highest rate since the data became available in 1997.

Source: OPP.org.uk

Engel & Völkers unveils new flagship on French Riviera

admin — Fri, 09 Dec 2011 06:12:00 GMT

The giant German overseas property agency franchise Engel & Völkers has opened up a new flagship store in Cannes on the French Riviera as prices in “prime locations reach new highs,” says the company.

“The French Riviera ranks amongst the most stable second home markets in Europe.” E & V told OPP this week. “The upper market segment in particular is characterised by a level of demand that remains consistently high.”

The Hamburg-headquartered group is now up and running on the “Rue des États-Unis” in Cannes, not far from the famous beachfront “Boulevard de la Croisette”.

E & V board representative Jörg Buchen told OPP that “in very good locations, prices per square metre for apartments range between €10,000 and €14,000. At absolutely prime addresses such as the ‘Boulevard de la Croisette’, prices can reach as much as €30,000 per sqm. Prices for villas range from €3 to €8 million, with exceptional properties sometimes even exceeding a price tag of €30 million.”

Source: OPP.org.uk

Toulouse, Munich and Hamburg offer best buy-to-let opportunities

admin — Fri, 09 Dec 2011 02:44:00 GMT

Toulouse, Munich and Hamburg have emerged as the most attractive locations for overseas property investors looking to get into buy-to-let opportunities abroad says German real estate consultancy PATRIZIA Immobilien AG.

The Augsburg-based company has just published a report comparing 82 European cities “in terms of their fundamental demographic and economic data.”

PATRIZIA told OPP this week that it wanted to look at factors “such as economic and population growth, population density, unemployment rate and the number of employed, as well as their institutional framework, i.e. the legal conditions and the existence of an institutional rental market for apartments.”

“Investors are finding the best risk-return profiles in north-west Europe - Scandinavia, Germany, France and the Netherlands”, Dr. Markus Cieleback, Head of Research at PATRIZIA Immobilien AG told OPP.

Source: OPP.org.uk

Video - Germany and France call for Eurozone treaty reforms

admin — Thu, 08 Dec 2011 02:21:00 GMT

Germany's chancellor says the Eurozone will stay on course, despite warnings of a mass downgrade of member states' credit ratings.

Angela Merkel was responding to Standard and Poor's announcement that 15 Eurozone countries have been put on quote "credit watch negative".

The ratings agency wants Europe's leaders to come up with a credible plan to save the euro.

Watch the full Al Jazeera report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/12/germany-and-france-call-for-eurozone-treaty-reforms/

Southern Germany city sees overseas demand surge

admin — Wed, 07 Dec 2011 05:21:00 GMT

More than 7 out of 10 property enquiries in the city of Lindau in southern Germany are from overseas property buyers says local agency.

Lindau, which is built on an island on the southern coast of Lake Constance (called Bodensee in Germany) is well placed to combine “spectacular views of the Alps, an enviable climate by German standards and a booming local economy,” Sabine Maria Wagner, managing director of the local Engel & Völkers Property Shop told OPP this week.

“Demand is pushing up house prices,” she says, and “70% of enquiries are from foreigners - an unusual figure in a country where people do not tend to move often, particularly from one state to another.”

Many overseas property investors like the city’s position and some come to work at a large and successful group of nearby engineering and aerospace companies based in and around Lindau and the larger city of Friedrichshafen, about 24 kilometres (15 miles) west, along the lakeshore.

Source: OPP.org.uk

France and Germany stand by eurozone plan

admin — Tue, 06 Dec 2011 09:30:00 GMT

France and Germany have reaffirmed their commitment to reform the eurozone, after ratings agency Standard and Poor's put most of the zone on "credit watch" over debt crisis fears.

The two countries said proposals for a treaty change agreed on Monday would reinforce governance of the eurozone.

They said their priority was to press ahead with the proposals.

S&P's move means six countries with top AAA ratings would have a 50% chance of seeing their ratings downgraded.

Source: BBC

Global housing markets struggling

Ivan Radford — Mon, 05 Dec 2011 11:29:00 GMT

The world's housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

What is most remarkable this quarter is the wide variety of outcomes:

Brazil and India booming

India and Brazil's housing markets have continued their spectacular outperformance, with Delhi house prices up 22.68% during the year to Q3 2011, according to National Housing Bank (NHB) figures. There were strong house price increases in almost all India's major cities, reflecting the country's current high rate of consumer price inflation, despite a drop in demand resulting from the repo rate hike in October (currently at 8.50%), the 13th since March 2010, making home loans costlier.

Brazil's Sao Paolo had the second highest house price rise in the world during the third quarter, with house prices up 5.88% during the quarter, according to the FIPE- Zap price index. Sao Paolo had an astonishing year, with house prices up 20.26% during the year to Q3 2011. The country is experiencing an unprecedented boom, not least because it is the host country for the World Cup in 2014 and the Olympics in Rio de Janeiro in 2016.

Europe's mixed housing markets

The world's second strongest quarter-on-quarter house price rise occurred in an unexpected city - Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria's capital.

The Baltics have also performed strongly. Latvia is the third best performer among all reporting countries in our survey over the twelve months to Q3 2011. In Riga, standard type apartments rose 13.31% year-on-year, a quick comeback after a fall of 5.40% in the second quarter.

Following Latvia was Estonia, whose housing market is rallying after three years of terrific losses that began during the onset of the global financial crisis. During the year to end Q3 2011, house prices in Tallinn were up 12.30% with a quarterly rise of 2.71%.

Other European markets which have enjoyed satisfactory increases were Norway (+6.74%), France (+4.80%), and Switzerland (+3.35 %).

Modest house price increases were seen in Slovenia (+0.82%), Iceland (+0.76%), Germany (+0.66%) and Luxembourg (+0.55%) in the year to Q3 2011.

Ireland stays weak

The Irish housing market remains the world's weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008. Quarter-on-quarter, Ireland's house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

Conversely, European countries which saw slower house price falls this year than the previous year include Turkey (-0.50%), Russia (-3.47%), Croatia (-4.59%), Hungary (-4.67%), Athens, Greece (-6.57%) and Kiev, Ukraine (-7.02%).

Asian housing markets now cooling

In Asia, several countries had house price increases during the year to end Q3 2011, albeit less strong than last year, following the government measures to curb the heat in their respective housing markets.

In Hong Kong, house prices were up 12.07% year-on-year, after a rise of 19.30% the previous year. In Malaysia, house prices rose by 3.15% year-on-year, after a rise of 5.76% during the same period last year. In Singapore, house prices rose by 2.73% year-on-year, a big drop from last year's 18.96%. In Taiwan, house prices were up a mere 0.46% year-on-year, after a rise of 6.97% during the same period the previous year. During the latest quarter, house prices were down 7.02%.

However, housing markets in South Korea and Philippines (Makati CBD) improved from a year earlier with price rises of 1.55% and 0.89%, respectively.

In Japan (Tokyo) and China (Shanghai), housing markets have been deteriorating since Q1 2011. House price declines are being reported across China, indicating the success of government measures during the past year. The country's skyrocketing housing prices have been blamed for social tensions and other economic problems.

Patchy progress for North America

The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet - National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.

In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes' worth decreased modestly in the third quarter, though levels remained high.

Israeli house price boom now over

House prices in Israel fell 0.58% in the year to Q3 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%.

The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward.

Pacific housing markets heading down

In New Zealand, median house prices were down 4.30% from a year earlier, with a quarterly house price fall of 2.26%. However, there is optimism in the housing market buoyed by low interest rates and recovery following earthquakes in Christchurch.

High interest rates and global economic uncertainty have continued to impact the Australian housing market, and it slumped 5.55% in the year to Q3 2011, the third quarter in which annual house price falls were reported this year.

Accordingly, the Reserve Bank of Australia (RBA) lowered the benchmark interest rate in November, the first time since April 2009, moving to boost the nation's economy amid uncertainty stemming from Europe's debt crisis. The benchmark rate is currently at 4.50%.

Foreclosures set to rise as euro woes continue: RICS

admin — Mon, 28 Nov 2011 08:23:00 GMT

The global supply of distressed property is set to rise through to the end of the year as economic turmoil in the Eurozone lingers, according to RICS' latest Global Distressed Property Monitor.

In Europe commercial property markets find themselves facing increasingly downbeat conditions, and negative sentiment is spreading across the globe, with almost three-quarters out of the 25 countries surveyed anticipating rising levels of foreclosure in the coming quarter. Most importantly, property professionals who answered the survey expect that supply will outstrip demand in 60% of the countries covered by the survey, a sharp 20% increase compared to Q2.

On the bright side, commercial real estate markets in China and Brazil are still prospering, with both countries expecting the number of foreclosed properties coming to the market to decline over the near term. In Europe, Germany and Russia also remain fairly stable in spite of high levels of economic uncertainty. In Germany, interest in distressed properties rose slightly from July to September with respondents predicting that the number of foreclosures coming to the market is expected to stabilise over the coming months. In Russia, while levels of demand by specialist funds fell during Q3, the supply of distressed properties is also expected to decline from now until the end of the year.

Source: Property EU

Video - Where next for the eurozone?

admin — Fri, 25 Nov 2011 04:27:00 GMT

Azad Zangana, European economist at Schroders, discusses the importance of a successful eurozone to the UK economy and whether breaking up the single currency is the answer to the ongoing crisis.

Watch the full video on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/where-next-for-the-eurozone/

Further growth in German tourism market

admin — Wed, 23 Nov 2011 03:21:00 GMT

Germany is becoming an increasingly popular destination for travellers from all over the world, even at a time of economic difficulty, according to the latest figures.

In September 2011 the destination achieved its best result since accommodation statistics started to be collected after the country’s reunification.

The latest figures from the German Federal Statistical Office show the number of overnight stays by international visitors in September 2011 rose by two per cent year on year to 6.3 million.

There was a total of 49.8 million overnight stays by international visitors between January and September 2011, an increase of six per cent compared with the same period of 2010.

Source: BreakingTravelNews.com

Number of German apartment deals already outstrips 2010

admin — Wed, 16 Nov 2011 06:19:00 GMT

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 — Mon, 07 Nov 2011 09:10:00 GMT

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 — Thu, 03 Nov 2011 08:00:00 GMT

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 — Fri, 28 Oct 2011 05:23:00 GMT

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 — Thu, 27 Oct 2011 06:15:00 GMT

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

EU crunch time: Your real estate escape routes

Ivan Radford — Wed, 26 Oct 2011 12:07:00 GMT

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/

Video: Travel Guide - Breuberg Castle

admin — Tue, 25 Oct 2011 05:56:00 GMT

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 — Tue, 25 Oct 2011 04:58:00 GMT

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 — Mon, 24 Oct 2011 08:39:00 GMT

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 — Fri, 21 Oct 2011 07:35:00 GMT

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

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

admin — Tue, 18 Oct 2011 10:35:00 GMT

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.

Germany sees more interest from overseas property buyers

admin — Thu, 13 Oct 2011 07:26:00 GMT

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 — Mon, 10 Oct 2011 10:30:00 GMT

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 — Fri, 07 Oct 2011 04:07:00 GMT

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/

Top of the Props: Germany earns buyers' trust

Ivan Radford — Wed, 05 Oct 2011 09:23:00 GMT

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.

Expo Real attracts 1,600 exhibitors

admin — Fri, 30 Sep 2011 07:37:00 GMT

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 — Mon, 05 Sep 2011 10:43:00 GMT

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 — Thu, 01 Sep 2011 07:04:00 GMT

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 — Thu, 25 Aug 2011 04:13:00 GMT

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 — Fri, 19 Aug 2011 06:31:00 GMT

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 — Wed, 17 Aug 2011 06:14:00 GMT

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 — Tue, 16 Aug 2011 06:34:00 GMT

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 — Mon, 01 Aug 2011 12:57:00 GMT

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 — Wed, 27 Jul 2011 10:01:00 GMT

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 — Wed, 29 Jun 2011 10:07:00 GMT

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 — Mon, 27 Jun 2011 11:29:00 GMT

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 — Mon, 27 Jun 2011 11:18:00 GMT

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.

Property prices skyrocketing in major German cities

Sarah Kendell — Fri, 24 Jun 2011 10:44:00 GMT

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/

Euro-zone wage growth picks up

admin — Mon, 20 Jun 2011 12:04:00 GMT

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 — Tue, 31 May 2011 10:35:00 GMT

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 — Tue, 31 May 2011 10:14:00 GMT

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 — Mon, 09 May 2011 11:32:00 GMT

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 — Thu, 05 May 2011 04:44:00 GMT

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 — Wed, 27 Apr 2011 10:59:00 GMT

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 — Wed, 20 Apr 2011 06:19:00 GMT

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 — Thu, 07 Apr 2011 13:12:00 GMT

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 — Wed, 06 Apr 2011 12:24:00 GMT

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 — Tue, 29 Mar 2011 11:51:00 GMT

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

Market expert predicts German property price surge

Sarah Kendell — Tue, 29 Mar 2011 10:26:00 GMT

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/

EU safety net comes just in time for Lisbon

admin — Mon, 28 Mar 2011 11:49:00 GMT

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 — Thu, 24 Mar 2011 12:27:00 GMT

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 — Wed, 23 Mar 2011 11:16:00 GMT

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 — Fri, 18 Mar 2011 12:17:00 GMT

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 — Thu, 17 Mar 2011 12:57:00 GMT

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 — Mon, 14 Mar 2011 11:03:00 GMT

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

Europe dominates world tourism rankings

Sarah Kendell — Thu, 10 Mar 2011 10:49:00 GMT

It may be losing ground to other markets in terms of growth figures, but the latest report from the World Economic Forum's global tourism summit indicates that Europe still has the most competitive tourist industry in the world.

The report, compiled at the WEF's Global Tourism Summit in Andorra, ranked 139 countries in terms of their tourism policy, local infrastructure, price competitiveness and natural and cultural resources. Sitting at the top of the list was Switzerland, followed by France and Germany. Austria, Sweden and Spain also made the top 10.

The WEF's Jennifer Blanke said the report indicated European nations still had a lot of potential for development and growth in their tourist industries. "The top rankings of Switzerland, Germany, France and Austria demonstrate the importance of supportive business and regulatory frameworks, coupled with world-class transport and tourism infrastructure, for fostering an environment that is attractive for developing the travel and tourism sector", said Blanke.

Europe's lack of inflation and relatively reliable rates of exchange on currency had also helped to make it a sturdy choice for vacationers, said Mathias Hellfeld of German broadcaster Deutsche Weller. "With its low inflation rates, the EU in particular has become a predictable and calculable holiday destination for foreign visitors", he said.

Berlin district suffers from ‘tourist overload’

admin — Wed, 09 Mar 2011 13:17:00 GMT

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 — Tue, 08 Mar 2011 11:38:00 GMT

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 — Fri, 04 Mar 2011 11:27:00 GMT

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 — Wed, 02 Mar 2011 12:54:00 GMT

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

Spain still EU's most popular tourist destination

Sarah Kendell — Tue, 01 Mar 2011 10:27:00 GMT

Spain may have attracted media attention for all the wrong reasons last year, but that didn't stop tourists from flocking there in their millions, proving its resilience as a destination despite the downturn and indicating that the current collapse in property prices may be just a temporary glitch. The latest figures from EU statistics body Eurostat reveal that out of all the 27 Eurozone states, travellers spent the largest number of nights in Spain's hotels in 2010.

A total of 268 million nights were spent in hotels in Spain by tourists last year, an increase of 6.4% from 2009. Even removing domestic travellers, the country still dominated in the statistics, with 155 million nights spent in hotels by non-residents, the highest in the EU.

Next in the rankings was Italy, followed by Germany, France and the UK, proving that when it comes to tourism, the 'big five' are still on top despite new EU member states displaying strong growth. These five countries made up a huge 70 per cent of total hotel stays in the Eurozone.

The EU in general saw a 2.8% increase in hotel stays from 2009, good news for the tourism industry overall, which has seen steady declines for the previous two years as the financial crisis saw many international travellers tightening their belts. The figures include both leisure and business travellers.

Interested in property in Spain?
Browse through our listings of apartments, houses and other properties in Spain here: http://spain.themovechannel.com/property/all/

Euro industrial property landlord posts healthy value gain

admin — Fri, 25 Feb 2011 11:36:00 GMT

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 — Wed, 23 Feb 2011 12:52:00 GMT

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

British investors look to German property

Sarah Kendell — Tue, 22 Feb 2011 11:05:00 GMT

It could be the increased confidence Britons have in new real estate ventures as the financial crisis recedes, or it may be the levelling off or, in some cases, complete collapse of property values in markets closer to home. Whatever the reason, British investors seem to be flocking back to Germany in large numbers, with more now interested in purchasing a property there than at the height of the European real estate boom in 2008.

According to a recent study conducted by German real estate consultancy Realogis, 30% of British buyers are interested in purchasing property in Germany, compared to 14% in France and 25% in their home country. The data was collected from around 100 investors across the private, fund-based and institutional sectors, a huge 74% of which think the German market is going to take off over the next three years.

In the wake of many popular European investment markets 'overheating' during the financial crisis, Germany presents a comparatively steady investment opportunity. A controlled supply of homes and a lack of speculative investors in the domestic markets has lead to property values holding steady throughout the last decade. Whilst boom markets such as Britain and Spain experienced extreme value surges of around 90% between 2000-7 before the recession, property prices in Germany actually fell 18% in this period, indicating the market is still ripe for growth.

The many opportunities to be had in Germany's retail and industrial property sectors are also a big drawcard to British investors. 26% of those who planned to invest in Germany were looking at retail premises, while 23% were interested in the logistics sector.

"In contrast to German investors, the residential property asset class plays a minor role for British investors", said Umut Ertan, Managing Director at Realogis. "Instead, alongside the traditional office and retail focuses, it is mostly logistics and light industrials that investors have on their shopping lists for Germany."

New merger to create world's largest stock exchange

admin — Wed, 16 Feb 2011 10:40:00 GMT

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 — Tue, 15 Feb 2011 11:22:00 GMT

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 — Mon, 14 Feb 2011 11:17:00 GMT

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 — Fri, 04 Feb 2011 11:11:00 GMT

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 — Thu, 03 Feb 2011 11:20:00 GMT

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 — Tue, 01 Feb 2011 11:03:00 GMT

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 — Tue, 25 Jan 2011 11:39:00 GMT

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 — Tue, 18 Jan 2011 12:18:00 GMT

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 — Mon, 17 Jan 2011 12:18:00 GMT

"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 — Sun, 28 Nov 2010 17:41:00 GMT

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 — Mon, 22 Nov 2010 18:52:00 GMT

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 — Wed, 10 Nov 2010 18:59:00 GMT

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 — Mon, 25 Oct 2010 18:41:00 GMT

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