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