A few years ago, the magazine Emirates 24/7 reported on the increased interest that Germany draws among Arab investors, especially high-net-worth financiers willing to place long-term bets on the Eurozone’s number one economy. Today, the spectrum of investments is expanding, with more MENA investors flocking into the German economy, seeking properties priced for all budgets.
Three main reasons explain the heightened appeal that Germany has for MENA investors.
Real Estate Trends in Germany
The property market in Germany is ‘hot,’ especially in large, prosperous states like Berlin and North Rhine-Westphalia. According to Bloomberg, “German property is looking more like London,” but with the difference that price spectra are represented in Germany. For example, investors can grab high-yield, attractive properties valued as low as 100 000 euros, or bid on multi-million-euro commercial or residential assets. There’s ‘meat’ for everyone in the market.
High-Yield Properties Galore
The great number of highly attractive properties is the number one reason Arab investors are allocating much more cash to German property portfolios. From Berlin to Cologne, from Essen to Munich, MENA investors are enlisting the help of local, multilingual and competent professionals in order to identify and bid on properties. In a realtor sector as competitive as Germany’s, companies that offer a back-to-back value proposal seem to be winning more business.
The German property sector provides a sure diversification path for Arab investors seeking to hedge portfolio risks. The sector also attracts families and professionals willing to relocate and work in Germany or other parts of Europe. Given the boom seen in the property market in Berlin and North Rhine-Westphalia, to name two states, experts think the trend will continue and more investors will see the local property sector as a long-term hedge.
As Germany’s real estate sector is continuing to expand, Arab investors, families and professionals are taking notice. In the last 10 years, MENA investment in Germany has soared in many sectors of the economy, including real estate.
The country remains an attractive destination for investment and asset allocation because it is stable and prosperous – and offers high-yield properties and diversification possibilities.