Sunday 30 September 2012

Let's Meet at Expo Real 2012

Today we have some information in our own interest:

Let's meet at Expo Real 2012 to discuss the optimisation of the operation of your properties.

What you measure is what you get!

We have proven concepts for performance management using Service Level Agreements (SLA) and Key Performance Indicators (KPI) in the fields of Facility Management and Property Management.
If this sounds interesting to you and you happen to be at the Expo Real in Munich this year why don't we get in contact and meet up to discuss the next steps?

Uwe Falkenberg

Falkenberg Solutions
Real Estate Consultants


Monday 24 September 2012

Germany September 2012 Ifo Business Climate Index Continues to Fall

The Ifo Business Climate Index for German industry and trade continued to fall in September, marking its fifth successive decline. The companies surveyed are again less satisfied with their current business situation. They also expressed greater pessimism about the future. The curbing forces on the German economy continue to prevail.

After recovering briefly last month, the business climate in manufacturing continued to cool significantly in September. Although survey participants were more cautious in their assessment of the current business situation, it remained clearly above the long-term average value. Expectations concerning the six-month business outlook remained clearly negative and dropped for the fifth month in succession. In terms of the outlook for exports, last month’s slightly negative trend continued.

The business climate recovered at both levels of trade. Companies in retailing reported an improved
business situation, while their expectations were only marginally more pessimistic. The same, but even more pronounced trends were seen in wholesaling. The wholesalers surveyed are far more satisfied with their current business situation than last month, but the six-month business outlook continued to cloud over.

In construction the business climate indicator fell again. Assessments of the current business situation
are less positive than last month. Moreover, the construction companies surveyed are more pessimistic about their six-month business outlook.

Hans-Werner Sinn
President of the Ifo Institute

Apartment Block in Berlin
Apartment Block in Berlin

The demand for property investment opportunities in Germany however is unwavering. The yields are under pressure due to the international influx of investors. Especially properties in Berlin are in high demand because of the relative undervaluation compared to other European capitals and the recent rent increases.

Uwe Falkenberg, owner of
Falkenberg Solutions
Real Estate Consultants


Thursday 13 September 2012

Real Estate Development Market in the Berlin-Potsdam Metropolitan Region Dominated by Residential Property

Property Development in Berlin
The property development market in Berlin and Potsdam is dominated by residential developments for the second consecutive year: A study compiled by BulwienGesa for Hochtief and TLG for the period of 2009 to 2016 claims 56.5% of the projects currently under construction or in the planning stage in the Berlin-Potsdam region are Residential Properties (3.5mn sqm). This is an increase of about 1mn sqm over the previous year. The entire project development volume in Berlin and Potsdam from 2009 to 2016 would thus be around 6.2mn sqm, or 12.5% more than in lst years study for the report period.
The total investment volume climbed by a further €2.3bn, to €18.3bn. This increase, however, is exclusively due to the residential sector: there were significant declines for retail (-132,000 sqm, down to 618,000 sqm) and hotel projects (-115,000 sqm, down to 700,000 sqm). Office developments fell back slightly by 12,000 sqm, dropping to 1mn sqm. Due to the lack of big deals in the commercial sector the volume shrank by €2.2bn.
The German version of the full study including data and graphs is available for download on


Monday 3 September 2012

German Residential Properties on the Upturn - Demand for Condos Rising

The BBSR (Bundesinstitut für Bau-, Stadt- und Raumforschung) an institute operated by the German federal government have published their annual research results on the German residential market. The focus was on owned single apartments (condos or condominiums). For more information in German click here.

After a longer period of price stability prices for residential property especially for condos in big cities have risen. There is no indication for a price bubble though.

The average price for used/existing condos in 2010 was at 1,160 €/m² whereas in the same period it was at 2,400 €/m² for newly built apartments (condos), more than double. For big cites the data for 2011 are available and show an increase of 3.5% for used and up to 14% for new condos (which includes newly built or newly divided existing buildings). Especially private investors view this investment type as a safe haven in view of the Euro crisis. The development is also supported by currently exceptionally good financing conditions.

Purchase Prices per square meter in 2010

Germany: Purchase Prices for Condos 2010
Click here or the picture for a bigger version.

From a marco-economic viewpoint the development of the prices for condos is congruent with the development of rents. Especially in economic centers with strong growth demand for housing is high with a price driving effect on both rents and condo prices which also radiates into the nearby areas.

Condo Prices compared to rents in Germany 2010

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 Click here or the picture for a bigger version.