Global property consultancy Knight Frank, has warned investors in the German property market that they should not anticipate "hefty" growth on their investment.
Nick Barnes, partner international residential research at Knight Frank, said that investors should take some comfort from the fact that an oversupply problem that the German housing market had a year ago, has now almost corrected itself, leading to far more "balance".
But he warned: "We are still not seeing any signs of strong capital growth. You can't expect that your property will grow by a hefty amount. I think there will be gradual improvement but it is not going to be exciting".
In May 2007, the Global Property Guide stated that Germany offered investors "moderate" rental yields and commented that gross yields in Germany had slightly increased.
The director of the London School of Economics Sir Howard Davies told BBC Two’s Daily Politics earlier this week that the fact that German house prices "have not risen for a decade" made them more immune to the global credit crunch than nations such as Britain and USA.
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