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German real estate: A new gate to foreign investors

An enthusiasm for real estate in the eurozone’s largest economy has taken fund managers to the former East Germany

The German commercial property market has often been a domestic affair, but the country’s economic growth and rising values have meant that more foreign investors have been allocating capital to the country.

From a post-crisis low of €10.5 billion in 2009, the German property market attracted €30.4 billion of deals last year, according to CBRE. The property consultant predicts that deals this year will exceed €35 billion. In the first half of 2014, investors spent €16.9 billion on commercial real estate, a 27% year-on-year rise.

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