German Property Investments – 10 Compelling Reasons That Make Germany a Top Investment Location

You’ve read that German property investments are attracting major international investors on a growing scale. Institutional investors are being drawn into the market by low property prices and high yields in addition to other reasons which confirm Germany as a great investment location. Separated from the world’s main investment markets by distance and language, here is a list of 10 compelling reasons that make Germany a top investment location for cash deposit holders or pension fund investors looking to recoup some of the losses of the last few years.

10 Compelling Reasons That Make Germany a Top Investment Location

1. Economic Fundamentals – The economic fundamentals coming out of Germany are improving all the time. There are strong signs that Germany is the not only the powerhouse of Europe but the financial saviour of the Euro economy as well.

2. Population – Germany has critical mass with a population of 82 million making it the largest western democratic economy in the world and fourth largest economy in the world overall, after The USA, China and India.

3. Exports – Germany is the world’s second largest exporter with a surplus on balance of trade only slightly smaller than China whose population is 15 times larger. Recent economic news points to exports continuing to grow strongly.

4. Economic Growth – GDP – A 2010 GDP figure of 3.5% was ahead of target and the 2011 target has been raised from 2.3% to 2.6% at a time when many world economies are still in contraction. Increasing affluence is causing more Germans to want to own their own homes.

5. Trade Surplus It seems like the world wants more of what Germany makes whether it’s a luxurious Mercedes or something more basic like a spiral note-book. In 2010 Germany exported $1.33 Billion compared to the USA’s $1.28 Billion.

6. Business Confidence – From January 2010 to January 2011 business confidence has been recorded at an all time high and has started 2011 with great vigor.

7. Unemployment – Germany is one of the few countries in the world where unemployment now is lower than in 2008. Currently at 7.5%, the figure is expected to fall even further in 2011 with over 300,000 new jobs being added to the workforce. Unemployment in the former eastern zone is at its lowest ever since 1991 (reunification).

8. Budget Deficit – The German Budget deficit is on target to reduce to 2.4% of GDP in 2011. Unlike most other economies, it is under control.

9. Purchasing Manager’s Index – The Purchasing managers Index tell us about the pipeline of materials being bought by industry for conversion into finished product. The index now stands at 61.0, another indicator that Germany is leaving its Euro Zone partners out in the cold.

10. Domestic Demand – Traditionally a nation of savers, there are now signs beginning to emerge that domestic demand is beginning to contribute to the growth of the German economy.

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