Thursday 19 October 2017

Study: Eastern Germany's mid-sized cities are becoming increasingly attractive

TAG Immobilien AG Housing Market Report 2017

  • TAG Housing Market Report Eastern Germany 2017 analyses 27 large and mid-sized cities in Eastern Germany
  • Growing demand for housing in areas around major Eastern German cities
  • Increase in popularity and new residents drives up rents and purchase prices, while vacancy rates fall 
  • Household housing cost burden remains stable or even declines due to strong purchasing power growth

Hamburg, 18 October 2017 - Eastern Germany's housing markets are on course for further growth. Urban populations continue to expand while vacancy rates fall. As a result, rents and property purchase prices are increasing in many locations. The good news: "Despite the fact that rents are rising, dynamic purchasing power growth means that household housing cost burdens remain stable or have even declined in some places", said Claudia Hoyer, Member of the Management Board at TAG Immobilien AG. This has been confirmed by the "Eastern Germany Housing Market Report 2017", published by TAG Immobilien AG today. As with last year's study, the real estate consultancy firm Wüest Partner Deutschland analysed data from 27 large and mid-sized cities in Eastern Germany, including data on population and economic growth, rents and purchase prices, property yields and the financial burden of housing costs across the region.
The report also includes interesting details about the development of gross yields and price development in Berlin.

Further findings, including the complete Housing Market Report Eastern Germany 2017, can be downloaded for free here.


Thursday 12 October 2017

Winning in Growth Cities - Cushman Wakefield Report 2017 and Outlook 2018

Key global cities are winning the race for investment – but which ones? The ‘Winning in Growth Cities’ report, published today, is an annual survey looking at global commercial real estate investment activity.

Key Highlights

  • Global property investment rose to $1.5tn in the year to June.
  • Led by New York, the US dominates the ranking of global cities but Asian markets made the most impressive gains in the past year.
  • London is still the number one global market for cross border players. Paris closed the gap in third place but German cities are the ones to watch.
  • While gateway cities again dominated, with the top 25 taking nearly 50% of the market, tier two cities have taken market share.
  • The economic background is more encouraging for real estate than many expected, with global growth forecasts raised by the IMF for the first time since 2011.

One of the key factors determining which cities will out perform is technological change. Developments such as virtual reality and big data are set to enable more rapid change and will start shaping cities and tenant demand within months rather than years.

This report aims to identify some of the key enablers and emerging technologies and looks at what will determine which cities are the winners in this radically shifting environment.

For Germany and especially Berlin we support all activities regarding property investment with our experience and specialized network of property professionals.

Download the PDF


Monday 2 October 2017

International Property Handbook - Trends 2017

The International Property Handbook from Deloitte’s Global Real Estate & Construction group tracks real estate capital flow, and provides a view of investment trends and key deals in the most active international markets. It reflects back on 2016 analyzing economic data and real estate investment in 21 countries around the world to provide insights on potential trends in 2017.
Key trends include:
  • Overall economic outlook is stronger, and there’s a significant increase in cross-border investments, especially in Europe.
  • While the total investment volume remains stable, countries with positive investment volume growth are those in which investors expect growth due to macroeconomic indicators, expectations of rental growth, and yield compression.
  • Offices continue to be the preference for investors.
  • Private and unlisted funds are the most active net investors, followed by institutional funds.
  • The capital raised continues to increase and investors are exploring new alternative markets.
Download the handbook to learn about the trends in the market.