German property "as safe as houses"

Property in Germany has been "as safe as houses" over the past two years, according to investment experts.

Denis Madden, managing director of German Property Centre, commented that the market has not seen the falls in prices that have been apparent in other countries.

He explained: "What we're seeing is price resilience in Germany. [The country] has, relative to other markets, been as safe as houses."

"It was a very slow starter in terms of property growth and the fundamentals are there behind the economy," he added.

Unemployment has been reduced by one million since the beginning of 2007, something which is beginning to fuel the further growth of the economy, Mr Madden concluded.

The Investment Property Database showed that Germany's all property total return was 4.5 per cent in 2007, a total up from 1.3 per cent in 2006.

A report by NSP international compared property prices in Berlin with those of equivalent properties in London and found that costs in Germany's capital were on average 50 per cent cheaper.