Wednesday, 3 June 2009

German Real Estate Index Points Up!

The mood in Germany's real estate industry, according to the King Sturge Real Estate Activity Index, is again brightening. After declining during the previous month, the survey-based value for the real estate climate rose in May by 8.2% to 55.6 points. For the first time this year, both its sub-indices improved: the profit climate rose by 9.2% to 54.8 points (previous month: 50.2) and the investment climate rose for the fifth consecutive time to 56.4 points (previous month: 52.6). The upswing in mood affects all real estate sectors. The most significant benefit was found in the office market where the climate index improved 10.2% to reach 33.3 points, still a level that is assessed as critically low. A cause for cautious optimism may be the second slight increase in the economic index based on macroeconomic data: the value in May, at 127.3 points, was 4.4% above the April level of 121.9 points.

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