Opportunities amid the dislocation: Investing in Germany’s property market
Description
This episode is sponsored by Arrow Global
Germany’s property market is facing the highest insolvency rate in Europe. Years of cheap credit and rising prices encouraged aggressive development, but when interest rates jumped, buyers paused, sales collapsed and projects ran out of cash. The result: a wave of bankruptcies across the sector.
However, in this episode, CEO of Arrow Global Germany Bernhard Hansen explains that there’s opportunity within this dislocation. Stalled projects and smaller developments are waiting for investors with the expertise and capital to finish them. With housing demand far outpacing supply, especially in cities like Munich, he believes there is still strong long-term potential.
That potential of course comes with challenges: stricter sustainability rules, tougher financing conditions, and wary buyers mean projects take longer and require deeper due diligence. Yet Hansen is optimistic. International investors and alternative lenders are stepping in, and he says the correction is less of an ending, and more of a recalibration of Germany’s real estate market.
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