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Germany take on Turkey tonight for a place in the final of Euro 2008. However, while many people's money will now be on the Germans to go on and win, it's not just on the pitch where Brits look to invest in Germany.
The German property market has many of the advantages of an emerging market, with the added benefit of a stable and developed economy.
The capital, Berlin, is now arguably one of Europe's most vibrant and dynamic cities; the east of the country is enjoying a number of large-scale regeneration projects; and the expanding tourism industry is boosting an already buoyant rental market.
Berlin and the surrounding areas are tipped by most experts to yield the highest German property investment returns – largely because demand is predicted to outstrip supply. According to one forecast, there will be the need for approximately 230,000 apartments in Berlin over the next seven years, but only 3,000 units are being built annually.
Petra Gajdosikova, managing director of Alpha Real Estate Investments, points out that foreign investment is having a positive effect on the Berlin property market. "Development is booming, with numerous large-scale office, retail and hotel projects underway," she confirms. "New office blocks host headquarters for large global companies such as MTV, Universal, Allianz, BASF and many more. A new O2 arena and conference centre is also being built and, when completed in 2008, will include 17,000 seats for music events and 15,000 seats for sports events. It is likely that this will attract many visitors to Berlin, thereby pushing German property prices up."
Rental returns from German property tend to be excellent, since only a small percentage of residents own their own homes. In Berlin particularly, this consideration has carried major weight with foreign investors. According to a major study into the Berlin housing market in the first quarter of 2008, rental rates are growing in every district in the city.
"I was attracted to Berlin property by the high rental yields possible," says Alan Jackson, who bought a two-bedroom apartment in the city last year. "After studying various locations around the world we decided upon German property and in particular Berlin, as this seemed to have all the right ingredients to become one of the most successful European markets ever."
With low prices, high rental yields and an economy which is largely withstanding the effects of the credit crunch, German property is certainly a good investment bet for 2008.
Whether the country's football team will be a good investment bet or not, we'll find out tonight.
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Germany vs Turkey
at St Jakob Park, Basel, Switzerland
Kick off: 19.45
Article first published 25 June 2008