WHY INVEST IN GERMAN PROPERTY?

• Europe's largest and world's 3rd largest economy
• World's largest exporter
• Gateway between the West and the East
• World's most undervalued property market
• Best capital growth potential of any developed economy (5-10 year term)
• Strong rental market, high yields
• Highly developed, reliable legal and land registry system
• Economic recovery now underway

Germany is one of the very few countries that haven't benefited from the world's property boom in the last 15 years and, according to OECD, one of only two severely undervalued property markets ( Germany by 26%, Japan by 21%).

This is even more true in the capital, with Berlin property prices below the construction cost and more than 30% lower than in other larger German cities.

Not surprisingly Berlin is the main target for the smart investor:

• Centre of the enlarged EU
• Capital of Europe's largest economy
• Seat of the federal government and numerous organizations
• Largest German city (3.4 million; nearly as much as Hamburg, Frankfurt and Munich combined) and second largest EU capital after London
• Base of countless multinational companies
• One of Europe's most competitive and attractive locations for international firms - in particular in media, high-tech and IT sectors ( Berlin has become Germany's centre of creative industries)
• 3rd biggest - and growing - tourist destination in Europe
• Recipient of enormous investments in the last decade (over 75 billion euros invested by the German government into Berlin's infrastructure since 1998 alone)
• Excellent public transport infrastructure (including new Main Rail Station - the largest and most modern railway junction in Europe), 3 international airports serving numerous low cost operators, massive new Berlin Brandenburg airport to open 2011 with an initial 22 million passenger capacity to later increase to 40 million
• Cultural centre of Europe
• Germany's only truly international city ( Berlin has succeeded in attracting artists, young people, students, intellectuals from all over the world)
• Low cost of living & high quality of life (40% of the city's area are parks)

Berlin's property market has received massive, multi-billion euro investments in the last 18 months, from international property and pension funds and private equity firms. Smaller investors are now starting to follow, recognizing the market's extraordinary potential based on:

• Historically low prices (properties being sold at less than their construction cost)
• Excellent value for money
• Very strong rental market (86% of Berliners live in rented accommodation)
• Rental yields among the highest in Europe
• Very low building activity over last decade coupled with increasing
• Number of households expected to create a serious shortage of properties in coming 5 years
• Strongest population growth in coming 20-30 years (highest net immigration of any European city)
• Remarkable affordability (Berlin prices are lower than even those in Central Eastern European cities, yet incomes many times higher)
• Increasing interest of local population to purchase own home
• Planned introduction of German REITs to give a massive boost to the property market (expected 130 billion euro investments)
• Extremely high capital growth potential (medium to long term)

No other property market in Europe offers such severely undervalued property prices, solid rental market and attractive rental returns as does Berlin. After a decade of sharply declining property prices (down by up to 60%), evidence suggests the market has now bottomed out.

In 2005, for the first time in over 11 years, property prices started rising again. At the same time, Germany's long awaited economic recovery now seems underway.

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Shrewd investors recognize that time to invest in the re-emerging German property market is Now. You now have the opportunity to be one of the early investors, hence maximizing your investment potential. With increasing awareness more and more buyers will be entering the market, resulting in higher prices and compressed yields.

Don't miss this rare opportunity to invest in prime property at bargain prices, in an established Western European market with enormous growth potential!

Take advantage of it Now!

Lowest property prices in Europe

While property prices all across Europe have experienced strong growth in the last decade, doubling and even tripling in some cases, Germany property has seen its values in sharp decline, falling by up to 60% since 1994. As a result, prices of residential property in Germany - and in particular Berlin and East German cities - are considerably lower than in any other EU countries (including the new EU capitals in Central Eastern Europe and the accession states).

Economic recovery

After 10 years of economic stagnation the German economy is growing again. Solid GDP growth forecasts, falling unemployment (down to 10%), business confidence at a 16-year high (research institute Ifo) give strong reasons for optimism. Leading economists have adjusted their prediction for Germany's GDP growth in 2006 a fantastic 2.9% thanks to a staggering 16% growth in exports as well as strong domestic consumption. And consumers are really regaining confidence - consumption is now at the highest level in over 25 years (Gesellschaft für Konsumforschung).

Multi-billion euro investments

The positive economic development along with a strongly undervalued property market and high rental returns have, since 2004, attracted huge interest in German property. Institutional investors, property and pension funds from Europe and the US have been pouring billions of euros into Germany's property market (and Berlin in particular).

Transaction volume in 2005 increased to a massive 51.4 billion euro, 62% of which came from foreign investors. Morgan Stanley, Cerberus/Goldman Sachs, Fortress, Lone Star, Terra Firma, Oaktree, Blackstone, Deutsche Annington, Soros are among the many investors believing Germany's time has now come.

2006 has been an equally successful year for German property, with a 140% increase in transaction volumes. Around 15 billion euro have been invested in the Berlin property market alone.
These multi-billion euro acquisitions are already having an effect on Berlin's property prices - good quality stock in favoured areas has seen an uplift in prices over the last year (apartment blocks) and competition from buyers, large and small, is very strong. A likely knock-on effect will be an increase in prices of individual apartments.