Posted on September 18, 2017
Historically, the German real estate market has not attracted a large amount of investment. This was, in part, due to the market’s reputation for stability. Investors saw it as unexciting and that greater returns were achievable elsewhere. Today, the stability remains, but this is now seen as a positive in a world where safe haven investments are few and far between. Paris had been the traditional destination for this type of investment, but jitters over the rise of populism and the potential for the Front National to win the presidency caused concern in the market. Uncertainty remains in the UK as to what shape ‘Brexit’ will take, while Spain and Italy still bear the hallmarks of recovery and have their own share of political instability. The stability offered by the German market is now an asset and seen as a safe haven for investors.
Germany is seeing record levels of investment, up 49% on 2016. Berlin, Frankfurt and Munich have broken into the top 15 European cities for investment*. B-locations have become increasingly important to investors. Logistics is in strong demand with sustainable growth predicted. German GDP is predicted to continue to rise and the political situation seems far more stable than in neighbouring European markets. This is likely to make Germany an even more attractive option for investors, looking for a safe return, in the coming years.
Pii work with UK and European property owners whose assets and operations extend across multiple European jurisdictions. We have been assisting clients with business in Europe – particularly in Germany – for several years now and are therefore well-positioned to assist you with your property portfolio. We specialise in commercial property insurance. As an investor, you are exposed to a variety of risks and regulatory environments. We can create pan-European insurance and risk management programmes tailored to meet your requirements. Our extensive network also provides representation and support to property owners with local operations or property management teams across Europe.
Pii also provides specialist transaction risk insurance. This can range from policies to replace the reps and warranties, to individual legal risks which can arise during a transaction. We have placed warranty and indemnity policies throughout Europe and provided solutions to zoning risks, voidable leases and numerous other risks which have hindered the completion of deals. Transactional policies can help remove risk from an acquisition or sale, providing a better quality and better value asset.
We would welcome the opportunity to discuss opportunities with, and offer our expertise to, anyone attending EXPO REAL.
Adam Keith – Manager, Transactional Liability
Email: [email protected]
Tel: +44 (0) 203 058 2536
* Source: CBRE