Interest in Germany from visitors to TheMoveChannel.com went into overdrive in January, as it raced into the Top of the Props Top 10 for the first time…

In January 2007, increased interest from visitors to TheMoveChannel.com blasted Germany up 13 places in the Top of Props chart into 6th position.  This was the first time the economic powerhouse had entered the Top 10.

TheMoveChannel.com’s Top of the Props chart reflects each listed country’s share of the overall volume of enquiries the property website receives over the preceding month.

Germany – finally breaking free of the past?

Given it has the 3rd largest economy in the world and some of the most affordable property of any industrialized country, it may seem strange that Germany is yet to participate in the housing boom that its West European neighbours have enjoyed over the last 10 years.  Germany has one of the lowest home ownership levels in Europe with only 43% of the population owning their own property (in comparison to 66% in the UK and 85% in Spain) .

The 1990s were not a good decade for the German property market.  After German reunification in 1990, prices in the western part of the country soared due to demand from the massive influx of migrants from the poorer East.  A huge building boom ensued, but this quickly lead to a painful collapse of the market in which institutions and individuals saw huge amounts wiped off the value of their properties.

Now, after 15 years of stagnant prices, the German property market is finding its feet once more.   Germany’s economy is starting to recover and in the second quarter of 2006 grew faster than those of both the UK and the USA.  Property prices are rising and investors are beginning to sit up and take notice.  And with low prices and a strong renting culture in one of the world’s largest economies that’s currently building momentum, you can understand why.

Stuart Law, Chief Executive of Assetz Fund Management, commented: “Two or three years ago large-scale professional investors began to guess that Germany may well be coming out of its long stagnant property market. Those guesses seem to be bearing fruit as the economy improves and house prices begin to move upwards albeit slowly.  Private investors have noted what's been happening in the market and are now beginning to join in as well. Property finance is getting slightly easier to source and companies such as Assetz are helping locate individual investment properties for smaller investors and this is beginning to open up the market to more people.”

Julien Lu, Regional Director of Imoinvest, commented: “Over the last years, the attractiveness of Berlin’s real estate market has increased tremendously. After a decade of stagnation, prices have seen strong growth, encouraging especially foreign investors to acquire Berlin properties. Compared to other European capitals such as London or Paris, property in Berlin is available at a fraction of the price – between 1000 and 3000€ per square meter. Prices and rents are considered as having significant potential – so now is the time to access a huge future market at an early stage, at low cost and minimum risk.”

Claudio Rois, International Property Director of movewithus.co.uk, comments, “In Germany, home ownership is still unpopular making it a good place to invest due to the constant demand for rented accommodation.  In addition, its properties are still largely undervalued compared to other parts of Europe, but with recent political change we predict this will lead to an acceleration of pace in the economic reform.  We have recently opened an international office in Berlin, in recognition of the capital’s return to being one of the world’s major cities.”

Germany’s GDP has been predicted to reach 2.5% this year  and the OECD has forecast that this economic recovery will continue well into 2008 making Germany one of Europe’s hottest long-term property investment hotspots.

Other movers and shakers in this month’s chart

Other significant developments in this month’s Top of the Props chart include:

• Venezuela was the highest climber, leaping 14 places up the chart to 19th place
• Other high climbers were Malta and Czech Republic who both jumped 9 places to 30th and 26th positions respectively
• Portugal reached its highest ever position, rising 5 places to occupy the 4th slot
• Turkey and Brazil were new to the Top 10 - Turkey climbed 5 places to reach 7th while Brazil climbed 3 places to reach 10th