Germany can offer stable environment for investors businesses
With all the doom and gloom surrounding the continuing debt crisis in the eurozone, it is easy to forget that conditions vary wildly across this financial bloc.
Whereas countries such as Greece and Ireland may be teetering on the edge and receiving bailouts from the International Monetary Fund and the EU, other members are performing fairly strongly.
Germany, for, example, is probably one of the bright spots in the eurozone right now, which could help to explain why so many foreign investors have been looking there.
The commercial property market could offer a number of good opportunities for businesses and private investors who are planning to transfer money online to Germany.
Indeed, Savills recently reported that it expects transaction volumes in this particular market to pass the €20 billion mark this year. This, it said, is because properties such as office space are attracting lots of interest both domestically and from foreign buyers.
More than one in three transactions that took place last year involved offices, while retail properties were also very popular during 2011.
Matthias Pink, Savills Germany's head of research, said this is because retail investments are typically more stable than other purchases.
"Investors who continue to focus on secure investments appreciate this characteristic," he commented.
"Another reason is the stable and currently very good consumer sentiment in Germany."
Lars-Oliver Breuer, head of investment at Savills Germany, added that its forecast of transaction volumes exceeding €20 billion in 2012 is realistic, assuming the level of demand translates into actual purchases.
However, he acknowledged that making predictions for the coming year is difficult, considering there are many uncertainties at the moment.
"What will be crucial is whether the situation in the financial markets stabilises and if the eurozone succeeds in convincing investors of its stability," Mr Breuer said.
This comes after UK prime minister David Cameron, speaking at the World Economic Forum in Davos, called on European countries such as Germany to take "bold action" to resolve the financial crisis.