Coronavirus Can’t Stop Chinese Investors' Enthusiasm for German Real Estate
Although the coronavirus pandemic is slowing down the real estate sector across the world in general, Chinese investors continue to search for good deals especially in Germany during the first quarter of 2020. Based on the investment volume of Chinese investors, Germany was ranked as top five outbound investment destination during the first quarter. Unsurprisingly, Germany was always the popular destination for Chinese investors from 2007 to 2019, according to relative outbound investment data.
Why are Chinese investors still looking for real estate property in Germany during the coronavirus pandemic? This country has highlighted its appeals during corona crisis in a several different perspectives. Compared with other countries in Europe, Germany coped with the coronavirus pandemic much better in foreigners’ eyes. The pandemic was under control rapidly after the first death caused by coronavirus in Germany. The accessible healthcare system as well as effective political leadership result in a stable society in Germany. Moreover, the low unemployment rate also shows a great economic environment in this country. As a result, Chinese investors have looked beyond the pandemic.
Along with Chinese strong culture of buying and investing abroad, the traditional decisive priorities are countries, cities, and education facilities. Therefore, the big environment of Germany becomes Chinese buyers’ top choice. On the other hand, real estate offers relatively better risk-adjusted returns, which attracts investors to diversify their investment portfolios. The trend of rising capital allocations to real estate leads to the great advantages for housing industry. Over the years, real estate has remained an attractive asset for Chinese investors.
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