Research from Angermann Goddard & Loyd (AGL) is indicating that a number of key factors are positioning the German retail market for continued growth.
According to AGL's 'Perspectives on German Retail Property' research report, Germany outperformed the rest of Europe in the year to June 2010. This success looks to continue due to a muted development pipeline, as well as a stronger debt market and fewer retailer failures than most European countries.
Germany's retail market did suffer last year with major chain Karstadt being put into administration, and a handful of other retailers failing. However, most retailers in Germany were able to effectively restructure their businesses.
Michael Biddle, AGL's managing director, said: "As the tide of recession gradually lifts from the world's economies, investors are gaining the necessary confidence to re-enter the German property market.
"The banking sector is recovering and loans on sensible terms for investments and developments are again available. Low interest rates and the positive economic outlook for Germany further add to the improving trend.
"We anticipate these positive trends to continue and strengthen over the next year, driven by increased availability of debt and equity. We also anticipate increased levels of investment stock as a result of growing numbers of investors seeking an exit from their retail portfolios. We expect this combination to provide some excellent investment opportunities.
"In the post-recession world, many investors are re-appraising their attitudes to risk and return. Germany offers many of the low risk, stable return attributes that will be increasingly sought after."
Source: Angermann, Goddard & Loyd
