Jones Lang LaSalle issued a report yesterday stating that newer property in such German cities as Hamburg, Munich or Frankfurt represents a good real estate investment

The report acknowledged that there is some "turmoil and instability" in the market in terms of transactions and prices, and pointed out that getting banks to make loans was still a difficult process, taken all in all property in major German cities was very attractive.

‘Strong demand will still be observable for properties built in 1995 or later in top locations such as Hamburg, Munich or Frankfurt. In this market segment, regardless of the economic environment, only few or no price changes can be noted,’ the report from Jones Lang LaSalle pointed out.

It must be noted that older,  non-modernised property from the 1950s and 1960s, located in structurally-weak regions and with a considerable maintenance backlog, are not doing so well.

The German residential property market is the largest housing market in Europe.

There are many reasons for the good prices property investors are receiving.Many sales involve people who are forced to sell due to their financial condition, or purchasers who will only buy at discounted prices.

Jones Lang LaSalle, with its headquarters in Chicago,Illinois, USA, has sub-headquarters operating in London (covering Europe, the Middle East and Africa, and Singapore (covering the Asia Pacific regional market).