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| DEGI reveals 1.7 billion euros invested in property in 2008 DEGI, part of Aberdeen Property Investors, announced that it invested a total of 1.7 billion euros for its public property funds in 2008 at its annual press conference in Frankfurt am Main, Germany. The property asset manager is planning new acquisitions in anticipation of further inflows with resources already earmarked. Since the end of 2007 DEGI has taken advantage of price corrections in several property markets offering the potential for significantly more attractive returns, The group of possible target countries is being widened gradually to include the United Kingdom, France and Germany, amongst others. According to the latest DEGI RESEARCH Report "Market Outlook Germany", the German office and retail markets have held up robustly throughout the market turbulence. In 2008, approximately 3.3 million m2 of office space changed hands in German centres. This figure constitutes the third-best result in the last 10 years and is only slightly below the record level reached in 2007. As a result of this high demand, vacancies have fallen by 4.6 %, resulting in a 2.6 % rise in peak rentals. Inline with the predicted economic recovery in 2010, an upturn in the property markets with rising rentals is anticipated from 2011after an inevitable time-lag. The outlook for 2009 is for more vacant properties and a falling level of rentals. Total investment volume in the property investment market in 2008 was 25.4 billion euros. Following the record years of 2005 to 2007, this represented a significant normalisation of turnover, since the transaction volume now corresponds to the 10-year average again. In comparison to 2007, turnover was down by approximately 60 %. The reduced demand for property investments is being manifested in rising peak returns. In the main investment centres, the peak returns have increased by an average of 47 basis points to 5.6 %, which corresponds to the average figure over the past 14 years. DEGI's location scoring scheme analyses the growth chances and risks of 67 German A and B-locations. The three top-ranking office locations were Munich, Stuttgart and Cologne. It also concluded that there are five B-locations among the Top Ten. Besides Bonn, these are Mannheim, Aachen, Heidelberg and Karlsruhe. write your comments about the article :: © 2009 Construction News :: home page |