There are hopes that the German economy maybe past the worst of the recession after a major index of business confidence rose for the fourth consecutive month and to its highest level since November 2008.
The Ifo index polled 7,000 German firms on the business climate, the current economic situation and business expectations (future). The business climate index rose from 85.9points in June, to 87.3 points in July, the current expectations index rose to 84.3points from 82.4 in June, and the business expectations index from 89.5 to 90.4.
The Germany property market, certainly from an overseas property investment standpoint is very much based on the strength of its economy, with most investors buying properties with a view to the strong residential rental market in places like Berlin -- because of the predominance of German's renting their homes as oppose to buying.
Thus, the investors of yesterday and tomorrow will be keenly watching for any further signs that Europe's largest economy is starting to get back onto its feet.
There are those that believe the economic crisis may forever change the property market, with people taking advantage of any price-falls to buy their house and escape the rental market, but I myself feel this is unlikely -- in Berlin especially renting is a way-of-life.
No comments:
Post a Comment