Germany never saw a collapse like Southern Europe, Spain, Portugal and the like. Prices stayed the same. Never declined. But now real estate is really on the way UP in all major cities.
We said 3 years ago in our annual forecast that we felt Berlin and most other German cities were undervalued. Since then prices have risen to such an extent (and with it rents) that it is making headlines and TV shows in Germany.
Rents are actually a lot higher and are up:
– Munich are up 29 %
– Frankfurt 23% and
– Cologne up 25% in a year
So are prices, Germany real estate deals:
– Prices for a condo have doubled in the last 5 years in cities like Stuttgart – 4,500 and 7,500 euros per sq meter (top area 11,500!) or $500 – $833 … per sq. foot
– In Berlin and Cologne prices have risen 6% and 7% respectively last year for single family homes, less so for condos. Sounds like Vancouver?
Commercially, CBRE reports that it expects a record 45 billion euros in transactions with up to half of the investment coming from foreigners in the first quarter this year! LOTS OF FOREIGNERS! “Especially high net worth investors from North America, Asia and Germany are desperately looking for big ticket investments worth between 250 and 500 million euros.” YIELD!
Also the Canadian big boys are buying… Here in Cologne a Canadian DREAM REIT Global bought the tallest building in Cologne this February at 113 million euros, the largest transaction in its history. Also Brookfield Asset Management from Toronto was the world’s largest real estate fund manager in 2014.
Canadians are playing in Europe!