It’s always the same. For whatever reason, usually to do with human activity and greed and avarice, a bubble forms. As more people find out about what can always only be a false promise of lasting wealth emanating from the bubble and try to get in, the bubble stretches and gets bigger and bigger. Eventually, the bubble can stand it no longer and bursts under the pressure, spilling contents asunder. It is not only the bubble that is deflated; the expectations of the occupants of the bubble, based on that false promise of wealth, are also deflated.

Institutional real estate investors could be excused for feeling battered and bruised after the experiences of the past two years and for being nervous over what the future may bring. We believe, however, that natural caution should not stand in the way of what are likely to be great investment opportunities in 2010, both continuing in the United Kingdom and as continental European markets near a key turning point.

German insurance companies represent some of the largest institutional investors in Germany. A recent survey conducted by Ernst & Young revealed that the majority of the questioned German insurance companies planned to raise their real estate quota on average to approximately 6.3 percent by the end of 2009.