EMEA Investors Intentions Survey by CBRE: Germany at No.1 again with Berlin moving up to No.2 city

INVESTOR INTENTIONS SURVEY 2017

Berlin moved up to No.2

 The CBRE has arrived at these conclusions:

• Economic conditions are positive and investors have ample capital to deploy in real estate
• In EMEA, investors are planning for $475 billion in real estate investments in 2017
• For 2017, 85% of investors intend to spend at least as much as in 2016, and 40% expect to spend more
• Germany is ahead of the UK as the most attractive place to invest, as was the case in 2016, but investors are showing an increasing tendency to invest in the UK despite uncertainty over Brexit
• The Nordics enters the top three with a significant jump compared to 2016
• London retains the top spot as most popular city to invest in with an increased share, but Berlin shows the biggest increase, moving into second place
• ‘Pricing’ and ‘Availability of product’ are the biggest obstacles to investing in EMEA real estate
• Office is the most popular sector: interest in logistics has increased
• Risk appetite has increased slightly
• Income related factors such as ‘Yield relative to other asset classes’ are investor’s key motivations for investing in real estate

  The full report is available: https://researchgateway.cbre.com/PublicationListing.aspx?PUBID=6e0d802a-c164-48fd-acb3-1057547a0312 

Another interesting result is the preferred property type:

For support in property search and optimisation of property operation please visit our website http://www.berlin-portfolio.com

EMEA Investors Intentions Survey by CBRE: Germany at No.1 again with Berlin moving up to No.2 city

Real Estate Market in Berlin and Germany - Outlook After Brexit

The outcome of the UK referendum on membership in the European Union (i.e. the vote to exit the union known as Brexit has led to many discussions and wild speculations regarding the impact this will have on the economies of the UK and indeed the remaining EU members. Most statements and predictions are based more on emotions than economic facts but emotions have a significant impact on market developments as we see demonstrated by the global financial markets every day.

A clear economic downturn in the UK and political reactions to this development have already manifested themselves.

Alongside financial services, the property market in the UK has been a destination for international investors. There are uncertainties linked to Brexit with regard toall aspects of how and when the procedures will start and what the impact on investments will be. There already are negative risk aspects attached to investments in the UK without any decision actually having been made. This will cause a diversion of investments to other destinations in Europe. On a city level the winners will most likely be Frankfurt, Berlin, Paris, Luxembourg, Dublin and Amsterdam. On a country level the biggest winner is most likely Germany. This is the conclusion a recent study made by Cushman & Wakefield comes to:

Brexit & The European Property Investment Market.

Our market observation in Berlin confirms this development as we see an increased activity by international investors from large residential property package deals in the housing market to investments in commercial and development properties.

For information on current investment opportunities in all property market segments in Berlin please contact us using the contact facility on our website: http://berlin-portfolio.com/feedback.html

 

Real Estate Market in Berlin and Germany - Outlook After Brexit

Property Management Case Studies

Anyone can decide to start a Property Management in Germany. No qualifications or permits are required. It is vital for the well being of a property investment that the owner checks all the aspects of the management frequently or as a long distance investor have someone do this on the owner's behalf.

We are always astonished about the things that can happen in a Property Management and for how long it can go unnoticed. For illustration purposes we have compiled a small selection of actual Property Management Case Studies, just the names were changed. Here are the topics currently available:

1. Regular Rent Increase Forgotten!
2. Trouble with the Re-Renting Process.
3. Property Manager with Criminal Energy.
4. No Documentation of the Building and Investments Made.

To read the details, just follow this link Property Management Case Studies. It will take you to the relevant section of our website.

Property Management Case Studies

Berlin is Globally Ranking Fourth For Foreign Real Estate Investment

Despite moderate concerns about the impact of higher interest rates, 64% of respondents to the 24th annual survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE) and released today say they expect to have modest or major increases in their investment in US real estate in 2016.  Another 31% say they expect to maintain or reinvest their investments. No one plans a major decrease.

For the second consecutive year, New York outranked London as the top global city for foreign real estate investment. Berlin, ranking fourth, became the first German city to be named among the top five global cities:

Click the image to enlarge

These are some of the findings of the Association of Foreign Investors in Real Estate (AFIRE)
More details in their press release:
http://afire.membershipsoftware.org//Files/2016_Survey/Public/2016_Survey_Press_Release.docx

For detailed information about the Berlin Property Market also visit our website.

Berlin is Globally Ranking Fourth For Foreign Real Estate Investment

Germany City Ranking 2015: Munich 1, Berlin 2, Leipzig 3 and Frankfurt 4

The HWWI/Berenberg City Ranking 2015 is out. Some major shifts have occurred. For the first time Munich beat always first Frankfurt for No.1. Seven years ago when the first study was published Berlin was at No. 24 it has now reach No.2. No.3 is still not Frankfurt, it is Leipzig which has constantly made its way up the ladder from No.12 last year. Only then ranking at 4 is Frankfurt.

The ranking is determined by economic strength, demographic and other factors. One of the focus points for future developments is the positioning towards highly qualified workforce.

For the other positions of the 30 largest German cities please refer to the graph below and the full report in German at https://www.berenberg.de/fileadmin/user_upload/berenberg2013/Publikationen/HWWI_Staedteranking/2015-10-05_Staedteranking_ANSICHT_FINAL.PDF

HWWI-Berenberg City Ranking 2015 Summary Index
Source: https://www.berenberg.de/fileadmin/user_upload/berenberg2013/Publikationen/HWWI_Staedteranking/2015-10-05_Staedteranking_ANSICHT_FINAL.PDF

Germany City Ranking 2015: Munich 1, Berlin 2, Leipzig 3 and Frankfurt 4

English Translation of the German Civil Code - German Tenants Rights

There is a lot of confusion amongst international investors about tenants' rights in the German Residential Market. One thing needs to be clarified at the outset, German tenants have more rights than investors from western societies are used to. The historical background is the vast destruction of residential buildings during the war and a need to protect the needy in a time of scarcity.

Now it has turned into an election ritual to improve tenats' rights prior to elections since the majority of voters in Germany are still tenants and not owners. The conservative Merkel government makes no exception in this game and has enabled local governments to limit the rent increase to 15% over a time period of 3 years just before the elections.

The main legal structure for tenancy law is the German Civil Code (BGB - Bürgerliches Gesetzbuch) and there is an official translation available on the website of the German Ministry of Justice:

http://www.gesetze-im-internet.de/englisch_bgb/index.html

The regulations regarding tenancy are in Title 5 of the code.

This will give you some idea what a paragraph quoted in a contract or legal document is about - but please refrain from making any legal interpretation on your own without legal council or at least feedback from your property manager. The German judicial system is not determined by precedence as much as the Anglo-American system but there is up to date high court ruling to be taken into consideration for the interpretation of the civil code. So the translation is to be used only as an indication of the subject that is addressed.

Uwe Falkenberg

English Translation of the German Civil Code - German Tenants Rights

New Tenancy Law in Germany

 

Germany's government decided on an amendment to the tenancy law.

The most important changes:

• Landlords can invest in energy efficiency measures, even against the will of the tenants. In turn the tenant will have a special lease termination right. Any disturbances arising from construction work must be accepted for up to three months without any reduction in rent.
• The rent increase remains at 11% of the renovation costs per year, and examining the question of whether this represents an economic hardship for the tenant can no longer delay the start of work.
• If a switch to energy contracting is made to improve the property performance, the cost can be distributed to the tenants if it is not higher than the previous operating costs.
• Owners will now be able to more easily enforce the eviction of tenants in default.
• In case of disputes, the courts may order the tenant to deposit the disputed amount until the end of the procedure.
• Finally, the new law is to prevent the circumvention of protection against eviction (protection for three years against eviction due to future owner usage) in cases of apartment buildings’ being converted into condominiums.

These changes  make life for owners a lot easier and the rental market more balanced. They take away some of the uncertainty for international investors in Residential Property who see the legal regulations in the German Housing Market as very tenant-friendly.

New Tenancy Law in Germany

German Economy Returned to Growth in the First Quarter

Economic Newsflash

 The German economy returned to growth in the first quarter. Gross domestic product  (GDP) rose seasonally adjusted by 0.5% from the previous quarter Q4 2011. The figure was higher than the 0.1% experts had estimated, according to a report by Barclays Capital. Compared with first-quarter 2011, the German economy rose 1.7%, the Federal Statistics Office reported on Tuesday. In the fourth quarter 2011, German GDP had declined 0.2% from the third period, its first drop since 2009. Europes biggest economy is more robust again mainly supported once again by exports but also private sector spending.

Supported by the economic development the German Property Market remains a top destination for International Investors.

German Economy Returned to Growth in the First Quarter

Ballymore to invest 500 M in Berlin Project

With the acquisition of the Kudamm Karree in a prominent location of West Berlins famous shopping street Kurfürstendamm (called Ku’damm by the locals) the Irish Ballymore Group has taken on one of the biggest town planning challenges in the heart of Berlin. Based on a design by the British architect David Chipperfield the investment volume will be around 500 M Euro.

In a central location on Kurfürstendamm the complex is redevelopped and revived. The new Kudamm Karree will offer an exclusive mixture of apartments and business premises, hotels, cafés and restaurants, shops and leisure facilities. And not to forget: In a time in which otherwise also in Berlin many theatres and cultural facilities must be closed an entertainment theatre will be opened in the new Kudamm Karree in historical style. The total area will be approximately 63,000 sqm. Completion is planned for 2013.

This will pose another threat to the “Haus Cumberland” development by ORCO which is situated nearby and seems to currently be on hold.

For more information visit the project website please http://www.das-neue-kudammkarree.de/

For support in the identification of the right investment targets please visit the pre acquisition section of 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

Ballymore to invest 500 M in Berlin Project

RICS: Global Distressed Property Monitor August 2009

According to a study conducted by the Royal Institution of Chartered Surveyors (RICS), the number of distressed property sales has increased worldwide.

In 75% of the 27 countries examined, the number of so-called distressed properties put on the market went up during the second quarter, according to the poll. South Africa is at the top of the list of countries showing the largest increase, with the U.S.A. and New Zealand hot on its heels. The exceptions are China and Brazil, where the number of such objects on the market went down compared to the previous quarter.

There was little change in the German Property Market, Czechia, Hong Kong, Japan, Italy and Switzerland. On the other hand, Germany is among the favourite target countries for funds specializing in opportunities created by the crisis. Bargain hunters are also scrutinizing Italy, Great Britain, the U.S.A., Hungary, Spain and Ireland.

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

RICS: Global Distressed Property Monitor August 2009