The property investment experts have had their eyes on the German market for a few months now due to its stable economy, strong growth and low unemployment rate. It ranked as the most popular country in the world in a BBC World Service poll; and as the most attractive destination for foreign investors in a 2013 Ernst & Young report. While Savills reports a 155% increase in German hotel investment alone.

Figures released last week reveal that the German economy has expanded a further 0.7% in Q2 2013. France followed with 0.5%, beating economists’ expectations.

Carl Brzeski at multinational finance giant ING, comments: “Popping the corks. The German economy has staged an impressive comeback. The whole Eurozone is expected to emerge from an 18-month double dip recession.”

One reason for this is said to be a catch-up effort in construction, which contributed 0.3% to the growth. Another is export trade, which has always been one of Germany’s strong points.

It’s easy to see what makes German investment so attractive right now. Savills forecasts total turnover in the German commercial property market to hit the €30 billion mark in 2013, up from €25.3 billion the year before.

Savills says there is ongoing demand from risk-averse investors who are looking to buy assets which retain their value in economically challenging times. Around €12.5 billion was invested into commercial property during the first half of this year, making a 36% year-on-year rise.

Private investors and listed property companies each accounted for €1.3 billion and developers are also an active party, selling property worth over €2.3 billion. This is triple the total of the first six months of 2012, highlighting such strong demand.

Marcus Lemli, head of both Savills Germany and European investment, explains: “Germany’s exceptional economic position is increasingly reflected on the local investment market and real estate as an asset class is becoming increasingly attractive.”

Matthias Pink, associate director of research at Savills Germany, adds: “Currently the German property market, with its manageable risk, is extremely liquid and never before has such a large amount of equity been available for investments into core product.”

The recent RICS Global Commercial Property Survey also shows Germany and Belgium as the only European markets to record a positive increase in both occupier and investment commercial property during Q2 2013. As Europe’s largest economy, Germany continues to shine in terms of growth and sentiment within real estate, with the Royal Institute of Chartered Surveyors (RICS) Investment Sentiment Index (ISI) also showing a growth from 18 to 22.

Simon Rubinsohn, chief economist for RICS, says: “The results of the survey show that the weak economic picture across much of Europe is continuing to be reflected in the lack of demand to occupy property space … [but] the German market continues to be the strongest performer on the continent.”

Ray Withers, Chief Executive at Property Frontiers comments,

“We have been backing Germany as an investment location for some time now and our top tip is currently hotel room investment. We particularly like the 4* Alpen Club in Bavaria, the most popular tourism destination in Germany. Rooms start from £47,198 and it comes with a 10 year fixed return leaseback and assured net yield averaging at 10.33%”

For more information contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.