German real estate agents expect a boost from Britain's decision to leave the European Union. As Grace Pascoe reports, some expect financial hub Frankfurt to benefit.
Could Brexit boost property markets elsewhere? Many German real estate agents think so. With nearly 60 percent of those polled by EY expecting an upswing there. (SOUNDBITE) (German) ESTATE AGENT AND SPOKESPERSON OF REAL ESTATE ALLIANCE, STEPHAN SCHLOCKER, SAYING: "What is noticeable already, is the increasing demand behaviour. This is an early tendency to increasing prices and a higher demand of space. The early indicators are already there." 91 percent of the German real estate investors, consultants and portfolio managers surveyed predict a downturn in the British market. Demand for German real estate generally has risen this year - with investors drawing to Europe's biggest economy as a safe haven. And Frankfurt estimates 10,000 bankers may relocate there to retain a foothold in the EU. (SOUNDBITE) (German) FRANKFURT MAYOR, PETER FELDMANN, SAYING: "Frankfurt itself is in a very good position, we are already now the third European capital after Brussels and Strasbourg. And of course no financial institute in the world will be able to afford not being in Frankfurt in the future." Still 40 percent of respondents said that Brexit consequences weren't yet clear. (SOUNDBITE) (German) ESTATE AGENT AND SPOKESPERSON OF REAL ESTATE ALLIANCE, STEPHAN SCHLOCKER, SAYING: "We need investors to trust the market. We don't assume that the price for residential property in Frankfurt is going to be pushed by Brexit alone." But if it does, it could further boost demand for residential property ... ... where prices are already up strongly: apartments in Germany's top seven cities rose an estimated 14.5 percent last year, the biggest increase since since the year 2000.