The price boost on the German real estate market has further accelerated 2017

VDP-Real Estate price indices: The price boost on the German real estate market has further accelerated slightly 2017. With the results for 2017 The VDP also publishes the development of purchase prices n the top 7 cities for the first time.

The Association of German Pfandbrief Banks (vdp) represents the interests of the Pfandbrief banks in dealings with national and European decision-making bodies, and of a wider expert public.

Main findings of the report:

• Residential real estate prices rise 6.9% year on year
• Commercial property prices increase by 6.5% compared to the previous year
• Expansion of the vdp real estate price indices with information on the housing markets of the TOP 7 cities in Germany
• Housing markets in metropolitan areas remain strained: TOP 7 index rises 13.7% over the previous year

The full report in German is available here:

http://www.pfandbrief.de/cms/_internet.nsf/tindex/de_71.htm?OpenDocument&57495577A472A3AAC125823200371E52

The price boost on the German real estate market has further accelerated 2017

The German housing market in 2018

Price and rent outlook for Berlin, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart

The following information was provided by Deutsche Bank Research in their Germany Monitor.

Metropolitan areas in Germany are booming. The current real-estate cycle started in 2009 and has led to significant price increases for residential property in many cities. Prices for apartments have as much as doubled in some cities. Strong population and employment growth and declining unemployment rates are driving demand, and supply elasticity is low. New construction is slow to pick up, and vacancy rates are declining. As a result, rent growth is accelerating. Regulatory measures are unlikely to provide sufficient relief. House prices and rents look set to rise markedly in 2018.

Data from a number of cities confirm that demand is high and supply insufficient. In Munich, the vacancy rate is near zero. In Berlin, employment increased by c. 4% in 2017. Frankfurt was already 40,000 residential units short in 2015 – which suggests that 2017’s 15% yoy apartment price increase was not just Brexit-related. Stuttgart’s location in a basin restricts construction activity, contributing to the doubling of apartment prices during the current cycle.
Prices in Hamburg and Düsseldorf have risen strongly as well, even though demand growth has been slower in these two cities than in other metropolitan areas. The local housing-markets might therefore be more sensitive to interest-rate changes than their peers. Still, as our baseline scenario foresees only marginal interest rate increases during 2018, Hamburg and Düsseldorf should experience
price and rent uptrends, too.
Overvaluations are rising, and the risk of a price bubble in the German housing market is increasing. The price uptrend is likely to continue for several years, at least in most major cities in Germany.

The full report is available for download here: >>> The German housing market 2018 - DB Research

The German housing market in 2018

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.

International Property Handbook - Trends 2017

German property investment market ends year with extraordinary strong fourth quarter

In their latest quarterly review (Q4 2016) JLL shows a record 4th quarter but a decline of the total annual transaction volume compared to 2015. Last year had actually the third highest volume.

Transaction Volume Germany quarterly 2017
Source: JLL Research

There was a Slight dip in demand in the Big 7 and Frankfurt reclaims its position as the investment capital. This map shows the Transaction Volume 2016 by Region
:

Transaction Volume 2016 by Region
Source: JLL Research

Further observations mentioned in the report are:

• All asset classes feature on the shopping lists of national and foreign investors.
• Further yield compression with increasing capital values.
• No fundamental change in investment strategy.
• Above-average residential transaction volume despite lack of megadeals

Residential Transaction Volume, Germany
Source: JLL Research

 
The full report is available on the JLL Research website http://www.jll.de/germany/en-gb/research/1472/investment-market-overview

For property search and purchase support please visit our website www.berlin-portfolio.com.

German property investment market ends year with extraordinary strong fourth quarter

Prices for German residential and commercial property in 2014

The fourth quarter of 2014 saw the rise in price

for German residential and commercial properties continue further. The vdp property price index advanced 5% on the corresponding quarter one year earlier and currently stands at 122.6 points.

Rise in residential property prices continues; commercial property price increases weaken slightly.

Multi-family houses:
+ 7.2 %*
Owner-occupied residential housing:
+ 4.3 %*
Office properties:
+ 1.9 %*
Retail properties:
+ 3.3 %*
Q4.2014
* compared with the same quarter the previous year

These are the results of the vdp Property Price Indexjust published. For the full report follow this link.

For support in the identification of the right investment targets please visit our website at www.falkenberg-solutions.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. Please use this link to the contact facilities provided there to place any requests .
Uwe Falkenberg

Prices for German residential and commercial property in 2014

Germany House Prices 2013 in International and Historical Perspective

The economic research institution of Deutsche Bank DB Research has published their results on current property prices in Germany. Here is the translated content:

Germany house prices in international and historical perspective. 

With the rise of the German house prices concerns have increased that a housing boom has begun, which could end up with noticeable negative impact on the German economy. Our analysis of house price cycles in OECD countries shows that the current price increase in Germany, compared with past climbs, are moderate. Compared with other OECD countries, Germany shows even well below-average prices. We expect that the increase in real estate prices will continue in Germany, but the formation of a bubble is unlikely and the price increases are the normalization of the total housing market.

The development in different areas are obviously different. Munich and Hamburg are closer to a possible "bubble" than e.g. Berlin which is still highly undervalued compared to other European capitals like Warsaw and Budapest, not to mention Paris or London.

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 

Germany House Prices 2013 in International and Historical Perspective