German Real Estate Returns in International Comparision

UNDERSTANDING GERMAN REAL ESTATE MARKETS, pp. 363-372, Tobias Just, Wolfang Maenning, eds., Springer, 2012

Posted: 23 Jan 2012

See all articles by Daniel Piazolo

Daniel Piazolo

THM Technische Hochschule Mittelhessen

Date Written: January 20, 2012

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. Nevertheless, timing is also an important factor for the international investors looking at Germany. 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 in rigorous detail.

Keywords: Total Return, Real Estate, Risk, Risk Adjusted Return, International Comparision, Germany

JEL Classification: C43, E44, L85, R33

Suggested Citation

Piazolo, Daniel, German Real Estate Returns in International Comparision (January 20, 2012). UNDERSTANDING GERMAN REAL ESTATE MARKETS, pp. 363-372, Tobias Just, Wolfang Maenning, eds., Springer, 2012, Available at SSRN: https://ssrn.com/abstract=1988990

Daniel Piazolo (Contact Author)

THM Technische Hochschule Mittelhessen ( email )

University of Applied Sciences
Wilhelm-Leuschner-Straße 13
Friedberg, 61169
Germany

HOME PAGE: http://www.thm.de/wi/daniel-piazolo

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