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Chinese Investors Turn to Property in Germany for Investment
Brief:The transaction volumes of Germany commercial properties rose 32% in the first quarter, for many wealthy Chinese buyers interesting in investing Germany commercial properties.
Investment in German residential property rose 84% to €11.25bn in 2012 compared to a year earlier, according to a CBRE report.For commercial properties in Germany, transaction volumes rose 32% to €6.7bn in the first quarter year-on-year, and yields ranged from 4.38% for prime retail properties to 6.5% for prime logistics properties, according to CBRE.

 Lin, Dattner, who owns Anjia Immobilien & Consulting, said that mainland Chinese were behind the increases of purchases of commercial property. ‘Germany is very stable and has a robust legal environment,’ Mr. Dattner said. The appeal is in that stability.

Jan Linsin, head of research at CBRE in Germany, expects more interest in commercial properties as institutional investors in China are released from their government-imposed constraints on investing overseas: ‘Usually in Europe the first step is London, then Paris, then Germany. We’ve seen an interest in London in the last three years, so we are now expecting an increasing interest from Asia and especially China in German property.’

Luxury real estate agent Engel & Volkers has reported increasing sales to wealthy Chinese buyers in the past two years, a sudden jump from almost no activity in that market three years ago. ‘There has been a significant growth in demand from Chinese clients. It wasn’t noticeable before, but now it’s very noticeable,’ said Anne Riney, Sales Director at the office of Engels & Volkers in Berlin’s city-centre Mitte district. ‘They are doing it for the capital appreciation and the yield,’ Ms. Riney opines; ‘It’s a safe haven. Germany is a very stable economy.’


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