Dresden becomes the new "hot point" of German estate

Dresden becomes the new "hot point" of German estate

German Esate investors are more and more interested in a city is East, now
becomes one of the biggest and crowded city in Gernam, it is Dresden.

Dresden city is metropolis of Saxony state, 200 km far from Berlin capital
on the South. Now estate market at this city is on explosed period when German
estate companies widen to this place after the global finance crisis. Researching
company Bulwiengesa says that, during last 5 years, new appartment price in this
city increases 47%, quite far from the national average is 30% and 33% in Berlin.

"Now the price of house in Munich, Berlin and Hamburg is assessed too expensive,
thus the investors are finding and investing at new cities and Dresden has enough
potential to develop",  Ronald Fiedler, head of Engel & Voelkers estate research,
canvass organ in Berlin says.

After world war II, history centers around Maria Church in this city was re-built
from ruins. To youngarize the works help Dresden city take back its nickname before
the war is "Florence of Elbe", due to the arch and the tower look like a romance
image on Elbe river.

Althoug there is a strong price increasing and attract lots of big investors but the
appartment price in this city is still not too expensive, about 2.800 Eur//m2
(3.123 USD/m2). This is a suitable price compare with Berlin, where people have
to pa 3.850 EUR/m2 and much cheaper compare with Hamburg and Franklurt with
4.200 EUR/m2.

Volkswagen AG Corp built a factory near city center, city urban on east is the
factories manufacture chips. Electric integrated circuit industry with 1.500
companies recruited more than 48.000 persons, help this city becomes crowded
and activate estate develop.

"Dresden is also like other cities of German, was built and transfer successful
structure after 2 religtions unified", Mr. Wolfgang Schaeuble, German Treasury
secretary said.

Quick economy expanding speed and widen the universities, companies, big corp
activated big investment to estate, especially office, hotel, commercial center
segment during the last 1 century.

CEO of TLG Immobilien AG, a commercial company with head office in Berlin says,
the company is negotiating to buy some retail store at big cities in German, among
them, there are many store in Dresden to reduce the fee of office rent which increase
very high, reach 13% in the last 5 years.

"Dresdencity is developing in all fields, especially education. Many universities
was opened in this city, attract many young and intelligent persons come here to study,
work and build business. These factors will help estate her develop", Niclas Karoff,
member of TLG management board said.

Christian Falkenberg, operation manager at Falkenberg & Kakies research and develop
center shared: "beside high building and new appartment attract youth, the most attractive
to remind are ancient houses with creeper around. The house over the war still kep the
ancient beauty, mostly don't need to repair often have a high price and never be slow-
selling".



However, there are not a few ideas concern over estate situation in increasing suddenly
in Dresden. Bernhard Kaluaza, Manager of Kaluza Consult GmbH in Dresden says, many
people invested at the wrong time after 1990 and lost lots of properties because estate
price decrease suddenly. Now, estate price is increasing and I have enough reason to
worry about a "baloon" market.

Among the investors investing in Dresden, around 80% come from West German, the rest
are investors from Italia and Holland. Fiedler predicts, from now to 2020, Dresden
estate market will increase 3% each year.