Public Projects Never on Time and Budget 2

Berlin: Senate seeks new project manager for Opera-remediation
The Berlin Senate has terminated the contract with Drees & Sommer as project manager of the renovation of the Staatsoper Unter den Linden. Corresponding media reports confirmed a spokeswoman for the Senate Department for Urban Development. According to reports, the separation is "by mutual consent", but with "different ideas as to the construction project going on" in the background. With a temporary project manager in place the Berlin Senate wants to re-tender the service. The opening date is held. This was postponed to the spring of 2015, allegedly because in 17 m depth "surprisingly" old wooden posts were found. The renovation costs of the lately 250 million euros will not rise, but this is doubtful in view of a possible further time delays due to the re-tender.

Is this the BER Berlin Brandenburg Airport all over again?

Public Projects Never on Time and Budget 2

Public Projects Never on Time and Budget 1

Potsdam: Further delay in Landtagsbau because companies go bankrupt?
During the construction of the Brandenburg state parliament in the center of Potsdam new trouble threatens: The Saxon Sandsteinwerke GmbH, based in Pirna, on 1 November at the Dresden district court filed for bankruptcy. The company was previously supplier for the cladding for the city castle replica. The works of the company at the site have been set. The bankruptcy of Sandsteinwerke their lawyer reported claims outstanding more than 1.9 million euros to the BAM Germany, which builds the project in PPP. BAM itself is currently in dispute with the state over increased construction costs and a later completion date. Completion is still planned for end of next year. The costs are still with approx. EUR 120 million budgeted.

Public Projects Never on Time and Budget 1

Ifo Business Climate Continues to Deteriorate for the sixth consecutive month

The Ifo Business Climate Index for German industry and trade fell in October for the sixth time in succession. Companies again expressed growing dissatisfaction with their current business situation. The business outlook nevertheless remained unchanged at last month’s low level. The clouds over the German economy are darkening.

In manufacturing last month’s deterioration in the business climate continued in October. Assessments of the current business situation were significantly poorer and now approximately correspond to the long-term average value. Business expectations recovered slightly for the first time in six months and are less pessimistic. According to manufacturers’ reports capacity utilization rates were considerably lower than in the previous quarter. This marks the third drop in succession.
After staging a recovery last month, the business climate index in both retailing and wholesaling dropped this month. The retailers surveyed were much more satisfied with their current business situation, but expressed far greater pessimism about their six-month business outlook. Wholesalers reported slightly improved expectations, but their assessments of the current business situation cooled down significantly.
In construction the business climate indicator fell further. Although the construction companies surveyed expressed less pessimism about their six-month business outlook, they were far less satisfied with their current business situation.
Hans-Werner Sinn
President of the Ifo Institute

Expo Real 2012, the international real estate conference at the beginning of October in Munich has shown that 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

Ifo Business Climate Continues to Deteriorate for the sixth consecutive month

Office Investments in Germany Q3 2012

Investors spent more on office properties in Germany through September than in the same nine-months period during the last five years, buying more than twice as much in Berlin (172%) and Munich (138%) than the same period last year while other cities of the German "big six" like Hamburg or Dusseldorf had a slight decline.

Office properties valued at 6.27 billion euros ($8.22 billion) were sold in the first nine months of 2012, a 50 percent increase from 2011, according to data compiled by BNP Paribas (BNP) SA’s German real estate unit.

“Safety-oriented investors see good conditions here due to the relatively stable economic and employment situation,” Sven Stricker, head of investment at BNP Paribas Real Estate GmbH, said in a statement today. “Office investments have a good medium-term outlook, assuming the euro crisis doesn’t escalate.” For the full report in German click here.

Demand for German property in all property sectors has significantly increased this year as investors are seeking a safe place to put their money amid the risk scenarios of the euro zone’s sovereign-debt crisis. Germany’s economy, Europe’s largest, is forecast to grow 0.8 percent this year, according to the government and 1.0 percent for 2013. The economies of the 17 nations that share the euro are together forecast to contract 0.4 percent, according to the European Central Bank.

The demand for property investment opportunities in Germany 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.



Come back regularly as we will provide information on other market sectors shortly.


Uwe Falkenberg, owner of
Falkenberg Solutions
Real Estate Consultants

Office Investments in Germany Q3 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

(view my profile)

info@falkenberg-solutions.com
Website: www.berlin-portfolio.com
Twitter @property2010

Let's Meet at Expo Real 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

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

Germany September 2012 Ifo Business Climate Index Continues to Fall

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

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 www.berlin-portfolio.com.

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