Sascha Hettrich said Chinese capital has not yet invested in Germany but this is likely to come soon. "Chinese investors are looking around now, knocking on a lot of doors and informing themselves, while we have seen quite a lot of Indian-source capital invested here already over the last three years," he told a news briefing in Frankfurt. He expects both capital sources to use direct and indirect channels to invest in Germany, seen as a core investment in global property terms. "The first Indian funds are now looking for commitments from back home to make investments in Germany," he added.

The new interest is part of a gradual return of foreign investors to the German market. Mid-East investors have already been active. Also, said Hettrich, "The US and the UK are back!" Even if the Irish are not yet visible, net yields of up to 5% in Germany are highly attractive compared to under 3% on offer in Dublin or other centers such as Copenhagen.

Even some opportunistic institutions are being seen once again; however, financing remains the major obstacle. Banks are not yet prepared to lend above 60% loan to value and still avoiding the high ratios to support opportunistic returns. "The difference between this year and last is that last year investors had the money but the prices were too high and the quality was not what they wanted. Now, the price gap between buyers and sellers has become more realistic. We assume we will see opportunistic deals this year."