The German residential property market is the foreign property investment choice du jour for British and American investors.
This is the impression given by John Carrafiell, head of European real estate at Morgan Stanley, who spoke about the boom in German property at the annual MIPIM property trade fair in Cannes.
Mr Carrafiell presented an argument in favour of the country based on low euro zone interest rates of two per cent and the fact that German house prices have hardly risen in the last 15 years, making mortgage payments equivalent to or less than rent levels.
The residential market is also attractive to investors because of its stability, the property expert indicated.
"Tenants are paying rent for more than 13 years - it's not a high return but it's incredibly stable and in this low interest rate environment we think investors will find that attractive," Mr Carrafiell told Reuters.
A report into the European housing market released last week by the Royal Institute of Chartered
Surveyors described the German housing market said that "Germany's long-term stagnant market appears to be picking up as owner-occupiers increase their mortgage demands."
The report also found some regional differences, with East Germany still afflicted by oversupply of housing, whilst house prices in cities like Munich and Frankfurt have seen moderate growth.Click here to find out more about investing in foreign property.
© DeHavilland Information Services plc