With fears of a euro break-up subsiding, investors have been trickling back towards the European property market, with Germany coming up trumps.
Confidence in Germany has been so strong that it has overtaken Britain to become the most attractive European property market in 2013.
This is according to a recent report by property consultant CBRE Group. After surveying 362 investors, including some of the world’s largest fund managers, it found that 35% selected Germany as the most appealing market, compared with just 24% who chose the UK.
With property investors hovering over Europe once again, it looks as though 2013 could see a reversal in the misfortunes of the European property market.
Following strong action from the European Central Bank last year, just 9% of respondents said a break-up was the greatest threat to recovery, marking a significant decrease from the 24% it stood at in 2012.
The recession remained the predominant concern, with almost half saying they were most worried about the stagnant economy.
Peter Damesick, CBRE's head of European research, said: “While recession is a key concern, investors' fears of a euro break-up have subsided, and the overall impact of the euro zone crisis on investment activity appears to have eased.
“The next 12 months could mark the beginning of a reversal of the strong polarisation that has characterised European property investment market over the past two years,” he continued.
While Germany has steamed ahead of Britain in property investors’ books, London has beaten both Munich and Berlin as the most favoured city for property investment.
With 31% of the vote, London has retained its status as a safe haven for overseas investors seeking stability outside the volatile eurozone.
The results also indicated the growing confidence in the recovery of the Irish and Spanish economies and real estate markets, with Dublin and Madrid coming in sixth and ninth place respectively among the top 10 favoured cities.