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Chinese buyers snapping up 'safe' German properties
By Juwai, 10 July 2013
Real estate agents are seeing a surge in Chinese buying commercial and residential in Germany, valued for its stability and legal standards.
Commercial property brokers report a steadily increasing number of inquiries from Chinese clients, who see German real estate as a safe haven for their cash.
Many are business owners and come from second- and third-tier Chinese cities such as Foshan, Chongqing and Shenyang. They are buying hotels and shopping centres, priced at €5 million to €6 million, with multiple buyers each purchasing a share.
Investment in residential property in Germany rose 84% to €11.25 billion last year compared to the year prior, according to CBRE. Transaction volumes of commercial properties rose 32% to €6.7 billion in the first quarter compared to the same period a year earlier.
Residential property has seen a 35% price increase in the last five years as well as a significant growth in demand from Chinese clients, according to Engel & Volkers.
Half of Engel & Volkers' recent Chinese clients in Berlin's Mitte were those working in a branch of Bank of China that just opened in April. Other buyers were executives of Chinese companies with new branches.
Many were also buying for their children as China is the largest source of foreign students in Germany. In 2011, 22,828 Chinese students went to Germany to pursue an education.
Read more on South China Morning Post.
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