Despite the fact that there are only four German real estate investment trusts (REITs) in existence, international investors are eager to get involved in this European investment vehicle[1]. With much of the global economy struggling from various financial crises, the German economy – and real estate in particular – is experiencing increasing demand. The German real estate market has been depressed for several years, but now appears to be on the upswing with properties appreciating noticeably and reliably. And investors are taking notice and getting involved, with one existing REIT’s initial public offering (IPO) performing extremely well and causing Wall Street Journal’s economist Laura Stevens to “shine a spotlight on the Germany real estate market”[2].

Analysts believe that a major factor in the German real estate market’s growth potential is that “the German government…is taking really good care of Germany.” Interestingly, this does not mean that the government is over-regulating the market or creating artificial growth. Instead, it means that the land is being cared for, crime levels are extremely low, the free market is being allowed to establish a natural demand that is growing and investors have great flexibility in the ways that they can invest in real estate to make money.

Think our government could learn something about dealing with the real estate market from the Germans, or do you believe there is there more to this than meets the eye?

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[1] http://online.wsj.com/article/SB10001424053111904480904576497972650562748.html

[2] http://realtybiznews.com/4964/9874964/