The Project Developer Study 2020 shows: for the first time, residential property developments in the seven class A cities are declining. At the same time, growth in commercial real estate has also been significantly dampened
In 2019, the volume for office investments will total almost EUR 40 billion. This is the highest value ever documented. More than ever, the majority of these investments are in class A cities. There are several reasons for this popularity
Germany’s housing stock is not prepared for elderly dwellers – with barely 2.4 percent of the residential accommodation being disability-friendly. Accordingly, there is an urgent need for action. By converse argument, this represents quite an opportunity for providers of senior-living accommodation
What do you know about the city of Essen? For us, it is one of the most interesting tier-two locations in Germany – and not just because this is where we will open our fifth branch next February! Its office market is the most important one in the Ruhr, and the parameters for property developers are sound. Rents and prices on the housing market have seen substantial growth since 2012
The shortage in available land plots in some logistics regions is causing the keen demand for space to go unmet. Our new mathematical model captures the regional demand across Germany – arriving at an annual total of 6.5 million square metres. The good news being: There are alternatives on the peripheries.
Germany’s market for property developments is seriously in flux. For classic trader developers, it is becoming ever more difficult to build, especially when it comes to residential development. Could this be an opportunity for investor developers?
Profitable investments in existing residential real estate keeps getting more demanding in the markets of German A- and B-Class cities. In the Class A markets, yield rates have long dropped below 3 %. For the time being, the rise in price-to-rent multiples continues, suggesting a further rise in purchase prices compared to rents. But the curve might soon start to level out
Deutsche Hypo’s Real Estate Climate declined for the fifth consecutive time. Political uncertainties are worrying interviewed real estate experts. The decline of the Investment Climate was particularly rapid, but Hotel Climate and Logistics Climate also suffered serious setbacks. Only one segment bucked the trend.
There is a massive shortfall in construction investments—not just as far as buildings go—and particularly so in German municipalities. The balance has been negative since 2002. At a time when the body politic is urging private investors to build more homes, there is growing doubt that cities and communities are adequately funded to handle this task.
Office real estate is investors’ darling and has taken the place of retail real estate. That said, many investors, including more and more German institutional investors, have also warmed to logistics and operator real estate in recent years.
Fewer German companies than ever are willing to tie themselves long-term to a given property. The latest market report by Initiative Unternehmensimmobilien reveals: Lease terms have drastically shortened in recent years. Just five out of 100 occupiers rent for periods of ten years or more.
Things shifted in 2017. Commercial property completions outperformed residential ones for the first time that year. Today, even housing developers increasingly prefer to develop commercial premises, especially offices. If nothing else, this cushions the office vacancy situation that paralysed some markets.
Tourism in Germany is prospering. For nine years running, arrivals and overnight stays have been growing in number. The primary reason is strong domestic demand. By contrast, international tourism still has room for development in many cities.