| Economic developments | | | | Why now? |
| A robust development in the global economy, | | | | Global property players have been in the market |
| strong growth in the Eurozone are indicative of | | | | for over two years now and have tied a great |
| the current macro environ ment and are the | | | | deal of their equity. This is where the chance lies |
| driving forces behind a boom situation that | | | | for new arrivals in the market. Good investment |
| Germany's economy has been waiting for years. | | | | opportunities require speedy decisions and ready |
| Towards the end of 2006, the German economy | | | | available equity. These factors create a |
| experi enced its strongest upturn since the New | | | | competitive advantage in the market. Equity is the |
| Economy boom in 1999/2000. All significant | | | | easy part for a new arrival in the market but |
| economic indicators point to a positive growth | | | | speedy decisions require market information and |
| outlook for 2007 and suggest a sustained | | | | knowledge if they are not to turn out as risky or |
| economic revival that will not lose its impetus | | | | maybe wrong. |
| during the following year. | | | | There is only one solution to this situation - |
| In 2006, the German economy regained its role | | | | alliances with trustworthy partners already |
| as the power behind growth in the Eurozone, the | | | | present in the market with access to off market |
| vitality of this upturn exceeded all expectations. | | | | properties and know-how in their purchase and |
| The German Property Market is Europe's biggest | | | | operation. |
| with record transactions in 2006. Figures for the | | | | What is the best strategy? |
| first half of 2007 show no slackening in volume. | | | | Developing the right strategy for the way in and |
| Despite the high demand prices are still low in | | | | the way out again is key to any investment. The |
| comparison to international markets, even the | | | | properties need to be selected for the |
| Eastern European ones. The potential for property | | | | investment period envisaged. The exit strategy |
| appreciation is strong. | | | | has to be clear and the business plan developed |
| The rent level is still low and trailing behind the | | | | accordingly. Whether sale as condominiums or a |
| economic development. So buying now offers an | | | | block of rented apartments, market knowledge |
| upside on the cash flow as a good management | | | | of the respective markets is vital for the right |
| can capitalise on the catch-up to follow. | | | | purchase decision and the business plan. With the |
| Germany is still currently one of the few major | | | | right partners at the starting point a successful |
| economies where an investor can expect a | | | | and profitable exit after 3 to 7 years, depending |
| positive cash flow from property investments. | | | | on the strategy, is easily achievable. |