Abstract
Real estate investments have become international. Therefore also the returns have to be judged in an international comparative context. The question arises whether the returns of the German real estate market have justified the investments by domestic and foreign investors? The answer is: Yes and No. Yes, investments in German property have earned higher returns compared to other countries in some years like in 2009. No, looking at the average return for all the years since 1998, the German market has not turned out to be a good investment. Compared to returns in other markets, German returns have been low. Yet, they have proven to be less volatile in comparison to other markets. Furthermore, the international investor has to consider that the German market is very divers across sectors and across regions. To benefit from the catch-up potential of the German real estate market over the next years, investors are well advised to research the local markets rigorously.
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© 2012 Springer-Verlag Berlin Heidelberg
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Piazolo, D. (2012). German Real Estate Returns in International Comparison. In: Just, T., Maennig, W. (eds) Understanding German Real Estate Markets. Management for Professionals. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23611-2_24
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DOI: https://doi.org/10.1007/978-3-642-23611-2_24
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