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