German Consumer Climate Index up in January 2012

At the beginning of 2012 optimisme has returned to the German Consumer. Both the outlook on economic development and the wish to spend have increased significantly while income expectancy remains stable on a high level.

These are the main results of the lates monthly GfK (Gesellschaft für Konsumforschung) study for January 2012. While the January index value is at 5.7 it is expected to go up to 5.9 for February 2012.

This develoment supports the recent development in the rental market for Residential Property where rents have gone up significantly in 2011, especially in Berlin.

German Consumer Climate Index up in January 2012

Ifo - German Business Climate Index January 2012 shows third rise in a row

Every month the responses of over 7000 businesses to the Ifo Business Survey, the confidence indicator frequently referred to as the Ifo Index is published. The January 2012 results show the 3rd rise in a row.

Ifo Business Climate Continues to Rise
Results of the January 2012 Ifo Business Survey

The Ifo Business Climate for trade and industry in Germany improved for the third time in succession in January. Although companies assess the current business situation as less favourable than in December, their business expectations have brightened considerably. The German economy has started the year positively.

The business climate improved in manufacturing. Manufacturers see their current business situation as slightly improved and their business outlook as clearly more favourable than in the previous month. Export expectations and personnel planning are also somewhat more positive once again. Capacity utilization in manufacturing is currently slightly lower than in autumn 2011. However, use of equipment and machinery remains above average.

In retailing the business climate index fell. The business situation here is no longer as favourable as it was in December. Moreover, retailers are more sceptical about their short-term business outlook. In wholesaling the business climate deteriorated slightly. The wholesalers surveyed continue to assess their current business situation as very positive, but less favourable than last month. Their business expectations are once again slightly more confident.

The business climate in construction improved for the third month in succession. The current business situation, however, is no longer as favourable as in the previous month. The constructors surveyed are nevertheless significantly more confident about their six-month business outlook.

Hans-Werner Sinn
President of the Ifo Institute

View the Full Report here.

For support in the identification of the right real estate investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .

Uwe Falkenberg

Ifo - German Business Climate Index January 2012 shows third rise in a row

Blow for Property Owners in Germany - Schlecker Insolvent

Germany's biggest drugstore / chemist chain "Schlecker" has filed insolvency.

"Schlecker" is operating many small chemist's shops in neighbourhoods rather that the big high street flag ships. They have larger shops in shopping centres as well but these usually have better coping mechanisms for replacing tenants.

For many property investors this insolvency will pose a problem as many of these shops are the only or one of few commercial units in predominantly residential apartment buildings. As there are not many other  potential tenants with a similar concept we expect pressure on the profitability of the properties hit by this event.

If you own a property with Schlecker as a tenant or are not sure, you should get in contact with your property management right now. If you are not happy with their performance in dealing with the issue we provide a performance improvement service to help you find an appropriate business partner with a good solid contract.

Blow for Property Owners in Germany - Schlecker Insolvent

Berlin 2011 in the TOP 5 most popular locations in Europe

In the Cushman & Wakefield annual Cities Monitoring Report 2011 Berlin now ranks among the five favorite business locations in Europe:

2011	2010	1990
1. London	1	1
2. Paris	2	2
3. Frankfurt	3	3
4. Amsterdam	6	5
5. Berlin	7	15

The third German city among the top 10 is Munich, which remained in 9th place, but Düsseldorf's rank dropped from 10th down to 14th. The rise of Berlin is particularly interesting looking at the longer term development starting from 1990. Berlin got bonus points particularly for its immense cultural offerings and its universities, combined with its tenant-friendly housing market.

The main expansion goal within Europe remains Moscow. The 501 largest companies in Europe were interviewed for this annually compiled report. 

The Berlin Residential Property Market has great opportunities but appears complex to the outsider. Knowledge of the local markets is important and independent advice is vital for Residential Property Investment in Berlin. We also recommend the Berlin Housing Market Report 2011 which can be downloaded from this Blog by following the link above.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .

Uwe Falkenberg

Berlin 2011 in the TOP 5 most popular locations in Europe

Residential Property in Berlin - Top of the Shopping List in 2011

Residential Property in Berlin is currently considered a very attractive investment by German and International Investors, especially Institutional Investors. This is the result of a recent study by the German Market Research and Consultancy firm Bulwin Gesa, Berlin.

The prospects for investments in existing properties in Berlin are considered "positive" to "very positive" by 92% of those investors taking part in the survey. For investments in new projects the figure was at 86%. Berlin is back on top after some years of slower business.

A comparison of the seven "A-Cities" Berlin, Düsseldorf, Frankfurt/Main, Hamburg, Cologne, Munich and Stuttgart the Berlin Property Investment Market for existing buildings showed Berlin at the top with 71% naming it as most attractive. It was followed by Hamburg with 67% and Munich 58%. For new projects however Hamburg, Munich and Frankfurt are in the lead (in that order) leaving Berlin ranking fourth with 58% finding it an attractive Investment Market for new residential projects.

Investors are expecting the highest rent increases. More than half of the investors are expecting that Berlin will have the highest rent increases in residential properties. Second and third rank are Munich and Hamburg with 23% resp. 11%. Looking at the two segments "existing" and "projects" Berlin is way ahead in the existing properties regarding the expected rent increase. This is caused by the low starting level compared to other major cities. For new projects the expectations are lower but still seeing Berlin in the lead with 45% followed by Munich (34%) and Hamburg (10%).

Asked for reasons why investors stayed away from Berlin in he past 35% subsequently named the low rent level followed by the complex market structure which requires good local knowledge. Also the relatively high vacancy rate in the past has kept some investors away.

BulwinGesa has interviewed ca. 100 German and International Investors for this survey. The survey was sponsored by six Property Companies in Berlin.



The Berlin Residential Property Market has great opportunities but appears complex to the outsider. Knowledge of the local markets is important and independent advice is vital for Residential Property Investment in Berlin. We also recommend the Berlin Housing Market Report 2011 which can be downloaded from this Blog by following the link above.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .

Uwe Falkenberg

Residential Property in Berlin - Top of the Shopping List in 2011

German Business Climate Index at a Record High for June 2011

      June 2011 Ifo Business Survey

The Ifo Business Climate for German industry and trade improved in June for the first time since February. The firms have given clearly more positive assessments of their current business situation than in May. Although their business expectations are again somewhat less optimistic, the firms remain confident. The German economy is experiencing a robust upswing.

The business climate in manufacturing continues to be good. The hitherto excellent business situation of the industrial firms has improved again in June. The business expectations of the surveyed firms are once again less positive, however. They continue to expect impulses from exports but are not quite so optimistic in this regard as in past months. The industrial firms intend to be more cautious in expanding staff levels.

In retailing the current business situation continues to be good. The confidence of the retailers with regard to the business outlook has weakened considerably, however. For this reason, the business climate index in retailing has fallen. In contrast, in wholesaling the business climate index has risen noticeably. The wholesalers have given much better assessments of their current business situation. They are also more confident regarding the six-month business outlook than in May.

The business climate in the construction sector has brightened considerably. The surveyed building contractors have given more positive assessments of both the current business situation as well as the six-month business outlook than in the past month

Hans-Werner Sinn
President of the Ifo Institute for Economic Research at the University of Munich

Details and Download: Ifo Business Climate 

The strong Economic Development in Germany supports the high interest in Property Investments in Germany in both Commercial Property as well as Residential Property Investment.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .

Uwe Falkenberg



 

German Business Climate Index at a Record High for June 2011

Biggest Value increases in Berlin Residential Property

Total Return for Residential Property in Germany has reached 5.1% before taxes and financing in 2010. This fifth consecutive positive annual result is made up by 4.1% income return and a capital growth of 0.9%. The greatest increases were in Berlin (6.2%), Munich (5.7%) and the Rhine-Neckar region (5.4%). Variation in growth value across Germany was significant: while values went up in Munich (1.8%), Berlin (1.2%) and in the Rhine-Neckar area (1.1%), a loss in value of 2.3% was incurred for the Stuttgart region. Housing also decreased in value in the regions of the Rhineland (-0.8%), Hanover (-0.6%), the Ruhr District (-0.3%) and Rhine-Main (-0.1%).

The research is based on data from more than 2,400 buildings owned by institutional investors with a fair market value totaling over €5.9bn.

This research project was performed by IPD Investment Property Databank GmbH. More detailed information in German click here.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests.

Uwe Falkenberg

Biggest Value increases in Berlin Residential Property