Join us for FREE and access exclusive investments and property investment resources
Join IPIN here
Access exclusive opportunities that are only available to IPIN Members
Find out more
We never share your data with any third parties.
*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.
Office Property Investment
Safe Haven Investing
New data from BNP Paribas shows massive growth in the German office sector in the first nine months of this year compared to the same period last year. The data, from the firm's German real estate division shows that investors put 6.27 billion Euros into office property in the country up till September this year. That not only represents a growth of 50% compared to the same period last year, but is more than any year for the last 5.
According to the report Berlin and Munich were the favourite cities, with office investments rising 172% and 138% respectively, while investments in Düsseldorf, Cologne and Hamburg decline during the period.
"Safety-oriented investors see good conditions here due to the relatively stable economic and employment situation," Sven Stricker, head of investment at BNP Paribas Real Estate GmbH, said in his company's statement. "Office investments have a good medium-term outlook, assuming the Euro crisis doesn't escalate."
Investors are seeking a safe haven as they fear the Euro zone's sovereign-debt crisis will worsen, Stricker said.
Germany continues to attract safe-haven investors because it is Europe's largest and safest looking economy. Indeed, investors are quite happy to pay Germany for the privilege of lending to it, with yields on German bonds taking up residence in negative territory over recent months.
The German government predicts the country's economy will grow 0.8 percent this year, while the Euro-nations are expected to contract 0.4% on the whole.
Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.