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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