Emerging Trends in Real Estate Europe 2010
Emerging Trends in Real EstateÂ® Europe 2010 Report
The prospects for development have declined fractionally, but as other cities
have declined further, Berlin has risen up the rankings
slightly, moving from 15th to 12th. Residential property is
favoured. As one interviewee comments, â€œBerlin is an interesting
market for residential, â€˜It is hip to live in Berlin.â€™ â€ This
is reflected in the investment recommendations, with 31
percent of respondents citing residential as the preferred
asset type, the highest proportion for any of the cities covered
by the survey.
Among the top tips from the reportâ€™s respondents:
Keep it simple: Go for â€œplain vanilla real estate investments that everybody understands.â€
Best buys: Core is king. Stick to core and core-plus investments in large, liquid markets.
Development: For those with the stomach for risk, buy land and start building up a pipeline of projects. Residential and mixed-use are the best sectors.
Go for debt: Buy a bank or set up a lending platform. Now is a great time to lend on real estate, if you have the right skill-set and no legacy issues. Values are low and â€œthe gap between cost of funds and loan margins is as good as it getsâ€. Or, buy distressed debt at a discount.
Green is good: Real estate is on the front line in the battle against climate change. â€œThere is now a clear realisation that environmental and social responsibility is connected to economics. It has become an action issue.â€
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