Private wealth investors 'should look to German real estate'

Private wealth investment specialists may wish to focus on the German real estate market, as one expert advised "strong performance" is expected in a number of sectors.

Simon Mallinson, director of European research at Invesco, noted retail, industrial and office are all predicted to offer good returns, with the latter 'coming out first' due to the way the economy is recovering.

Those with private wealth seeking investment diversification may look outside the UK due to persistent fears over the strength of the recovery here, particularly with the spending review due later in the month.

Some claim further austerity measures may harm the country's output, but Germany's gross domestic product is among the strongest in Europe and the nation appears to be coping well with the aftermath of the global banking crisis.

Last week the Investment Property Databank revealed institutional European pooled property funds recovered significantly in the 12 months leading to June, offering 8.3 per cent local currency total return, compared with minus 18.6 per cent for the year up to the same month in 2009.  ADNFCR-2318-ID-800096737-ADNFCR