Global opportunities on horizon for 2006.

In 2006, the real estate industry will unquestionably witness a continuing globalization.

The following projections emerged from among the 100 seminars, round-tables, and conferences which took place during the eighth annual EXPO REAL 2005 held this past October in Munich.

Germany as a Market of Opportunity. Within the global arena, German real estate has long been overlooked.

But with a new government and an improving economy, German commercial real estate is emerging with a "buy" signal. In fact, in its recently released survey, members of the Association of Foreign Investors in Real Estate (AFIRE) said they considered Germany among the top three countries with the best opportunity for capital appreciation.

Experts say that some 10 billion euros in public housing portfolios can come onto the market at very favorable prices in 2006.

For those without the deep pockets to buy their own apartment building, the emergence of the German REIT will allow smaller investors to buy shares in publicly traded instruments.

Non-Performing Loans. In an event reminiscent of the US Savings and Loan crisis, which lead US banks to sell non-performing properties through the Resolution Trust Company, new international banking legislation, Basel II, is forcing institutions around the world to unload properties that are bogging down their balance sheets.

Southeastern Europe. The excellent GDP growth of the following countries make them markets of opportunity, according to Bank Austria Creditanstalt, By comparison, GDP in the USA for the same period was 4.0%.

* Romania, expected GDP of 8.3%

* Bulgaria, expected GDP of 5.6%

* Croatia, expected GDP of 4.4%

* Bosnia-Herzegovina, expected GDP of 5.0%

* Serbia and Montenegro, expected GDP of 7.5%

The Pan European Axis. According to Dr, Bruno Ettenaur, of Bank Austria Creditanstalt: "Real estate markets do not grow at the same rate across a geographic area, but rather along axes.

In southeast Europe, development is progressing across an axis stretching from Berlin to Turkey. This Pan European Axis is regarded as the 'real estate axis of the future.'" Cities to keep an eye on:

* Vienna, "the gateway to the east"

* Bratislava, expected to grow in line with that of its 'sister," Vienna

* Budapest, a clear boom region owing to good motor connection to the "outpost" Ukraine

* Belgrade and Novi Sad, forming an axis in Serbia

* Bucharest, already "discovered" by property professionals

* Constanta, expansion plans to the sea port are in place

Mexico. During a presentation at the annual American Afternoon at EXPO REAL, Will McIntosh, Ph.D., Managing Director, Global Head of Research & Strategy, ING Real Estate, New York, New York said Mexico was on his radar screen.

According to McIntosh, Mexico is the 11th largest population in the world and is growing by 1.4 million people per year. Growing wealth from an emerging manufacturing sector is driving the retail market, and a new secondary market for financing is driving housing starts to 750,000 per year.

The sectors to watch: retail, industrial, and residential.

EXPO REAL 2005 attracted 17,598 visitors and 1,415 exhibiting companies staffed with nearly 12,000 participants, from 60 countries, making it the industry's best attended international trade fair.

Twenty-nine US companies exhibited including NAREIT, AFIRE, the law firm, Patterson, Belknap, Webb & Tyler, Principal Real Estate Investors, Cambridge Title and Closing, NAI Global and Argus/ Dyna. 2005 marked the introduction of a USA Pavilion allowing multiple companies to exhibit together in an attention-getting, high traffic area.

The ninth annual EXPO REAL will take place in Munich, Germany, October 23-25, 2006. For information on exhibiting contact: [e-mail], or Visit EXPO REAL on the web at www.ExpoReal.net.

CLAUDIA BOYMANNS, EXPO REAL