This has held up relatively well in the current decline. Often when one market sector or area holds up well when everything else is getting hammered, it is a strong indication of solid value and demand for that particular sector. Once normal conditions return, often it will lead the way to the upside. German real estate is very cheap on a price per square meter basis compared to the rest of Europe and indeed most of the industrialized world. Yields are also pretty attractive in some areas. I have a feeling that before the G7 property bust has finished, German real estate will start climbing, and could be one of the best performing assets over the next decade. The only real risk is the currency, but this can be reduced by using a mortgage and a modest deposit (i.e. put down 30% instead of buying for cash). It would be also interesting to look at real estate stocks in Germany, although the correlation is never 1:1 with the underlying market. Any thoughts?