Germany is the most attractive European commercial property market in 2013, according to new research by CBRE.
A new report has highlighted that 35 per cent of 362 investors picked Germany as the most attractive property market in Europe, comparable to only 24 per cent which picked Britain. It should be noted however that there had been more German investors involved in the sample than in 2012.
With German open-ended funds liquidating, property firm DTZ has announced that it expects £18.28 billion of commercial property to be available in the market in the next four years. With forced sales estimated to reach a peak in 2017, assets are set to be much more available in countries such as Germany and the Netherlands.
It was not all bad news for Britain though as London was the most attractive city in Europe for the second year in a row, at 31 per cent, well ahead of German cities such as Berlin and Munich. Due to London being outside of the European Union, many overseas investors have seen the capital city as a safe bet in recent years. Other cities which made the top ten include Madrid and Dublin, showing signs that the Spanish property market may be on the way up.
CBRE's head of European research Peter Damesick said: "While recession is a key concern, investors' fears of a euro break-up have subsided, and the overall impact of the eurozone crisis on investment activity appears to have eased."
The survey further revealed that offices were still the most popular sector in the property market, at 29 per cent. This figure was slightly higher than this time last year. Mr Damesick added: "The next 12 months could mark the beginning of a reversal of the strong polarisation that has characterised [the] European property investment market over the past two years."