Wealth Report 2010 - Iside Real Estate

The international Real Estate Agent Knight Frank in cooperation with Citi Private Bank have introduced their new Wealth Report 2010, looking at locations from different angles. Berlin has made the 2nd rank thanks to its life quality. Find the full report to download here.

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

Wealth Report 2010 - Iside Real Estate

Consumer Climate in Germany With (a) Spring in its Step

Findings of the German GfK consumer climate study for March 2010

Nuremberg, March 25, 2010 – The downward trend in the GfK con-sumer climate will come to a halt in April this year – at least for the time being. Both economic and income expectations in Germany are improving, although the propensity to buy has recorded slight losses. The overall indicator is forecasting a value of 3.2 points in April, following the same value of 3.2 points in March.


The German labor market is continuing to prove amazingly robust this year. This stability, in conjunction with increasing signs of a recovery in the German economy, are currently triggering a significant rise in economic optimism among Germans. Income expectations have also benefited as a result in March, recording a moderate improvement. In contrast, the propensity to buy is suffering slight losses, although it remains at a good level. The slight weakening in March is probably attributable in the main to the recent considerable petrol price rises. Once more, the strong correlation between price expectations and the propensity to buy is holding true.

Economic expectations: clear growth

Consumers’ economic expectations have recorded a noticeable improvement in March. With an increase of some 10 points, the losses from the two previous months have been more than offset. The indicator currently stands at 4.5 points and has therefore returned to positive figures (i.e. above the long-standing average of 0 points).
The increasing signs of recovery in the German economy, as well as the fact that the generally feared severe job reductions have so far not materialized, have clearly somewhat allayed Germans’ anxieties about redundancy. Excluding seasonal influences, the number of those registered as unemployed has barely increased recently. In view of the severity of the financial crisis which Germany has suffered, this is a highly pleasing result, and is currently boosting the economic optimism of consumers. German companies are currently sharing the positivity of consumers: the Ifo business climate index has also risen considerably in March.

Income expectations: slight increases

In the wake of the significant improvement in economic expectations, the income expectations of German consumers have also recorded growth. However, with a rise of 1.5 points, the increase is considerably more moderate. The indicator currently stands at 13.5 points, which represents an improvement of almost 25 points on the value for the corresponding period of the previous year.
The rising economic optimism of Germans is the major reason why they are also assessing their income prospects somewhat more positively. In the current economic forecasts, experts are increasingly coming to the conclusion that unemployment is likely to develop more favorably than forecast a few months ago. This is having a correspondingly positive impact on income growth. In addition, government measures to boost purchasing power, such as the increase in child allowance and the full tax deductability of health insurance contributions, are having a uplifting effect on income sentiment.

Propensity to buy: marginal losses, but remaining at a good level

The propensity to buy has not been able to profit from the more optimistic economic and income sentiment of German consumers in March this year. The indicator is recording a slight drop of 0.8 points, although, at 23.4 points, it is still at a comparatively high level in comparison with the previous year (13.9 points).
In particular, higher petrol prices have led to rising price expectations among consumers in the past few weeks. Experience shows that this has a dampening effect on the propensity to consume.

Consumer climate: no further decline

The overall indicator is forecasting a value of 3.2 points for April 2010, following the same value of 3.2 points in March this year. The downward trend in the consumer climate has therefore come to a halt, at least for the time being. Previously, the indicator had suffered slight losses for five consecutive months.
It remains to be seen whether the consumer climate will continue to stabilize over the coming months. The further development of the labor market will be decisive in this respect. It must continue to be assumed that unemployment will be higher this year than in 2009. Consequently, GfK is standing by its forecast for private consumption this year, that is, that consumption will not make any significant contribution to macroeconomic development.

The survey

These findings are extracts from the "GfK consumer climate MAXX survey”, which is based on around 2,000 consumer interviews conducted each month on behalf of the EU Commission. The report contains charts, forecasts and a detailed commentary regarding the indicators. In addition, the report includes information on proposed consumer spending in 20 different areas of the consumer goods and services markets. The GfK consumer climate survey has been conducted since 1980.
The next publication date will be April 27, 2010.
Further information: Rolf Bürkl, tel. + 49 911 395-3056, rolf.buerkl@gfk.com

The GfK Group

The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 10,000 staff. In 2008, the GfK Group’s sales amounted to EUR 1.2 billion. For further information, visit our website: www.gfk.com. Follow us on Twitter: www.twitter.com/gfk_group.
Responsible under press legislationGfK SE, Corporate CommunicationsMarion EisenblätterNordwestring 10190419 NurembergGermanyTel.  +49 911 395-2645Fax  +49 911 395-4041public.relations@gfk.com

Doing Business in Germany : A Legal Manual : A Practical Guide to German Law and Taxes : Full Bilingual Index by Mueller, Rudolf & Ernest Steefel 

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

Consumer Climate in Germany With (a) Spring in its Step

German Business Climate March 2010 Much Brighter

Results of the March 2010 Ifo Business Survey

The Ifo Business Climate for industry and trade in Germany has strongly improved in March. The firms have assessed especially their current business situation as significantly more favourable. In addition, their business expectations regarding the coming six months are somewhat more confident than in February. The brightening of the business climate is evident in all surveyed economic sectors. Spring has now too arrived in the German economy.

In manufacturing the business climate is clearly more friendly than in the previous month. The manufacturing firms have reported a considerably more favourable business situation. With regard to the six-month business outlook their confidence is nearly unchanged. They view their opportunities for exports just as promising as in February. Fewer manufacturing firms intend to reduce the employment than in the previous month.

In construction and in wholesaling the business climate index has risen. In both sectors the firms have assessed their current business situation more favourably than in February, and they are also less sceptical in terms of the six-month business outlook.

In retailing the business situation has improved considerably. Both the current business situation as well as the business outlook have been assessed by the survey participants considerably more favourable than in the previous month. The business climate index in retailing has now made up for the strong setback reported in February.

Hans-Werner Sinn
President of the Ifo Institute for Economic Research at the University of Munich

Full Survey with graphs here

German Business Trends

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

Understanding American and German Business Cultures 

German Business Climate March 2010 Much Brighter

High Demand for Apartment Portfolios in Germany

Demand for high quality apartment portfolios in Germany remained high in 2009 according to market research performed by Savills Deutschland (view link for details in German).

Investors targeted high quality properties or developments in prospeperous metropolitan areas. This is reflected in the relatively high average price of 55,000 Euros per unit. This price does not represent an increase in price level in Germany, only the demand for higher value property.

There is still clear demand by institutional investors, mostly Property Funds and Private Investors for adequate properties. The availabilty however is reduced as owners are reluctant to sell facing fears of inflation and uncertainty about alternative investment options outside the property market in 2010. There is no clear indication for demand for lower quality properties yet and it will be a development to look out for in the first months of 2010.

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

High Demand for Apartment Portfolios in Germany

Berlin Area Residential Market Turnover Shrunk by 36%

The apartment market turnover in the Berlin region shrunk massively in 2008 compared to the previous year. The total number of purchases fell to 21,600 that is a slump of 11%. In financial figures the turnover shrunk by 36% to €5.2bn. The figure for the turnover built property in Berlin was reduced by 48% and almost halved.

BBU, an association of Berlin-Brandenburg apartment firms operates a regular market monitor which showed these results. In some of the boroughs (Bezirk) in the western part of the city, the price level for old buildings with comfort features dropped from 14 to 13 times the annual rent—in some boroughs in the east, from 17 to 15 times.

At the same time, price increases were observed for condominiums in Berlin. During the coming five years, BBU is expecting an increase in demand primarily for housing in single and semidetached houses in Berlin.
Berlin will remain a predominantly rented and not owned residential market. In the market for rental apartments primarily small and large apartments will be in demand, while there will be an excess of 30,000 medium-sized apartments the report states in its outlook up to 2014.

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

Berlin Area Residential Market Turnover Shrunk by 36%

October 2009: Ifo Business Climate Index Slightly Improved Again

Results of the October 2009 Ifo Business Survey

The Ifo Business Climate Index for industry and trade in Germany has risen further in October. The surveyed firms are slightly less dissatisfied with their current business situation than in September. They have again given more favourable appraisals of the business outlook for the coming six months. The economic recovery continues hesitantly.

In manufacturing the business climate is not quite as poor as it was in the previous month. The continuingly unfavourable business situation for manufacturers has improved slightly. With regard to the six-month business outlook, the survey participants are more confident than in September. Despite the appreciation of the euro, the firms see improved export opportunities. They are utilising their production capacities at a slightly higher pace than in the summer, although the utilisation rate is still far below average. The firms are planning to slow down the pace of staff reductions somewhat.

In wholesaling the business climate index has risen further. The survey participants report a clearly improved business situation in comparison to the previous month. Their appraisal of the business outlook is somewhat more critical, however. Retailers are more dissatisfied with their current business situation. They are also more sceptical regarding the six-month business outlook than in September. As a result, the business climate in retailing has worsened.

In construction the business climate remains largely unchanged. The firms are slightly more dissatisfied with their current business situation but have given more favourable assessments of their business outlook than in the previous month.

Hans-Werner Sinn President of the Ifo Institute for Economic Research at the University of Munich.

For details and graphs there is a pdf download available, click here.

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

October 2009: Ifo Business Climate Index Slightly Improved Again

Price Development for Properties in Berlin 2009

The German broker's association IVD came to interesting results in their latest market report for the Berlin-Brandenburg metropolitan region.

The price development for apartments in Berlin recently is spreading according to location. This spread applies both to purchase prices as well as rent.

Purchase prices and rents at the low end of the market and in medium locations fell slightly, they remained bullish in good and very good residential and commercial locations. Purchase prices for apartments in standard residential locations stabilised at €1,200/sqm, while sellers in choice locations were able to demand €1,600/sqm on average – some 3.5% more than during the same period last year.

Similar developments can also be observed in retail and office rents. While top locations in city centers were able to raise rents, facilities at the outskirts are still under pressure. Tauentzienstrasse, at €230.00/sqm, has the highest rent for retail. For office and doctors’ office space, current peak rent is €21.00/sqm.

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

Price Development for Properties in Berlin 2009