Why invest in real estate
In the current economic environment investors are faced with challenges regarding the identification of profitable investments with a reasonable risk-return spectrum. Over the past decade fixed income securities, especially government bonds, have been an attractive asset class for investors with a low risk preference. Due to today’s’ record low interest rates in Europe and the US this asset class has lost its attractiveness. As at January 2015, German 10-year government bonds generated an annual return below 1% and thus did not even compensate for the annual inflation rate.
In the light of this development, real estate offers an excellent investment alternative for risk-averse investors with reasonable return expectations. Due to currently prevailing excess liquidity in the global markets and investor’s increasing demand for a safe haven real estate appears as a profitable investment alternative. The significant appreciation in real estate prices, which has been observed in Central Europe in recent years, confirms this trend.
Based on the severe exodus from rural areas in Germany and migration into cities the demand for real estate in German cities is expected to increase even further. Supported by the loose monetary policy of the European and US Central Banks and the overall increasing economic conditions the German and Swiss real estate markets appear to remain a fantastic investment opportunity.
Therefore we are more than happy to provide our clients with professional advice on real estate investments.
For currently available real estate objects please look through our portfolio.
For further information on this topic please refer to the following external information.
Information on investments in bonds:
German Government Bunds
Information on developments in real estate markets:
World Economic Forum – Global Agenda Councils – Real estate
World Economic Forum – Emerging Horizons in Real Estate
How does real estate affect market cycles?
How real estate will drive integration in ASEAN
in Real Estate®