Investor engage in German commercial real estate has risen above even London’s light market, according to research.
“Germany is seen as the safe haven of Europe, it has the strongest conservatism, a liquid market and the ongoing political uncertainty is not making markets distraught,” Thomas Schneider, chief investment officer and founder of online marketplace BrickVest, averred CNBC over the phone.
According to BrickVest’s research, which scanned 3,500 people, one in three commercial real estate investors say Germany is the top jurisdiction to invest in Europe — beating the U.K. for the first time since 2015. With Brexit turn away a cloud of uncertainty over the future of U.K. firms, investors doubt that these theatre troupes will make strong commitments when it comes to their splits. As a result, the returns in U.K. office space are seen as limited and investors deliver started looking elsewhere.
Meantime, continental Europe has returned to extension after the euro zone debt crises, making the region varied attractive to real estate investors. “The market has been exceptionally hot, we’ve dated prices driven higher, we’ve seen record volumes, particularly in continental Europe,” Neil Blake, worldwide head of forecasting at real estate firm CBRE, told CNBC Tuesday.
He give the word delivered that one of the most interesting spaces is flexible office areas: “People lust after shorter, more flexible leases. I think it’s the internet arriving in commercial belongings.”
“Germany is benefiting from Brexit,” BrickVest’s Schneider added, highlighting that this is set to be the the actuality for at least another year. “Rental prices in the U.K. are simply too high,” he enlarged.
Some banks, including Standard Chartered, Goldman Sachs and Deutsche Bank, maintain said they will increase their workforces in Frankfurt come after the U.K.’s decision to leave the European Union. Rental prices in this bishopric have been on the rise, seemingly supported by these potential hit hards by the banking sector.