Berlin Residential Assets See Largest Price Increase Says TMF Group's Maraffio

For real estate investment managers, the German market has long been an alluring proposition from a market valuation perspective, thanks in part to the shadow cast by London's property market, which for years has become a trophy asset magnet, pushing core property prices into the stratosphere.

Cooling of UK market is good news for German real estate

But there are some signs that London might be cooling, with some UK value-oriented fund managers remaining underweight on London, at least for the next couple of years, as it doesn't presently offer good value. Commercial rents are softening and while there is new stock coming on line, take-up is below the historical average and vacancies are creeping up.