BERLIN-Germany has become a very popular investment destination post-crisis as investors look for security and core assets, and 2011 starts with cautious optimism, with more transactions and refinancing deals on the horizon, according to realtor Jones Lang LaSalle.

“All basic indicators show that German real estate is on a positive track,” said CEO Germany Andreas Quint at a recent press briefing. Transaction volumes almost doubled from 2009, and capital values, rents and rental transactions increased, mainly due to the overall healthy economic situation. Risks to look out for in 2011 are terrorism and war fears, euro and national debt crises, fear of inflation, new regulations and ailing banks.

Many credits from the boom years 2006 and 2007 will have to be refinanced this or next year, so that JLL sees more transactions coming in soon. “We do not expect any fire sales from banks but some offers should enter and stimulate the market,” said Quint. De-leveraging should set in during the next few years as well, as banks are trying to reduce their property credit exposure, and open-ended funds forced to close will set assets free. Large equity investors, such as pension and closed funds or insurers, are already picking up these assets.