German Residential Owners To Benefit From Retail Expansion
News Posted On: 30 November 2009
Germany is set to grow into a retail huib of Europe in the coming years, if the expansion plans of the 220 major retailers surveyed by CB Richard Ellis come to fruition.
CBRE has just released the findings of its massive survey in the summer of this year. Of those who plan to expand into new markets in the coming years, 47% are targeting Germany, 44% France and 36% Spain.
The research from CBRE has coincided with new research into the German property market from Savills, which found that retail transactions accounted for some 25% of all transaction in the German property market thus far in 2009.
Why would a residential property portal care about these findings? Because expansion in the retail sector is always going to be good news for residential property markets, especially in a market where buy to let investments target residential renters as they do in Germany.
In Germany, only 46% of the population owns their own homes, a fraction of those who own in most developed countries. This is surprising given that Germany is Europe's largest economy, but it does mean that people tend to move frequently for better job opportunities. Anyone owning a residential apartment near a German retail centre will be quid's in as the retail sector expands.
Almost all residential owners will benefit from the increasing affluence of a thriving retail sector, to compliment Germany's battered but massive export sector. Because when the Germany economy grows strongly enough to allow wage rises, the government will allow residential landlords to raise rents.
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