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german property benefiting from stability and stronger pound

News Posted On: 30 April 2010

Germany, like many European nations is benefiting from increasing interest from investors, due to the increased strength of the pound against the Euro, as well as its economic stability compared to others in the region. Benefits from this include increased activity from British buyers in the German property market.

Germany has always been the stable option, but this came to be a downside when Germany's slow, steady, but reliable growth paled to insignificance against the high-yielding emerging markets like Albania et al. Now, the fact that growth has continued at the same slow pace, the fact that there has been no crash or correction, are both showing up that slow and steady wins the race in property as well as in the fables.

There are reports of British and European property buyers postponing their transactions on the opposing locale, because of uncertainty over which way the conversion rate will go, will the election weaken Sterling, will the debt crisis worsen, weakening the Euro? All valid questions.

However, Sterling is currently stronger than it has been for many months, and Eurozone property 10% cheaper than it was at the start of the year. While many people are undoubtedly waiting for it to go even stronger, which seems likely over the long-term, many more are getting in now with below-price offers. This is particularly true where cash-buyers are concerned; cash-buyers are taking advantage of the fact that they have cash to buy.

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