April 2012 Ifo Business Climate Index for Germany still on the Rise

Results of the April 2012 Ifo Business Survey

The Ifo Business Climate Index for industry and trade in Germany rose once more in April. Companies’ assessment of their current business situation improved somewhat on a high level, while their six-month business outlook remained unchanged from last month. The German economy is proving resilient.
The business climate in manufacturing improved again on the previous month. The manufacturers surveyed see both their current business situation and their business outlook as significantly more positive. Manufacturers are increasing their capacity utilization. Their recruitment plans are slightly more conservative than last month.
The business climate developed differently at both levels of trade. While the business climate indicator increased minimally in retailing, it fell slightly in wholesaling. Climate components also developed in opposite directions. Retailers report some deterioration in their business situation and an improvement in their business outlook. A greater number of wholesalers, on the other hand, are satisfied with their current business situation, while their expectations clouded over slightly.
In construction the business climate was bleaker. The constructors surveyed report a slightly deterioration in their current business situation. They are also no longer as optimistic about their future business development as last month.
Hans-Werner Sinn
President of the Ifo Institute

For Detailed Data click here

 For support in the identification of the right real estate 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

April 2012 Ifo Business Climate Index for Germany still on the Rise

Berlin Residential Market Report 2012

GSW / CBRE have published their 2012 Annual Housing Market Report for Berlin.

Main conclusions

• Rents: Expensive rents get more expensive and moderate rents remain affordable.
• Rent Burden: The average share of spendable income to be assigned to rent dropped slightly from 24.4% in 2009 to 24.2%.
• Comparison: The Berlin Residential market still offers more for less than other German cities.
• Scoring: Pankow, Friedrichhain-Kreuzberg and Treptow-Köpenick are in high demand with investors and in advanced positions on the investment cycle.
• New building activities mainly in popular locations for high value customers.

For new contracts average net rents have risen by 7.8% from € 6.11 in 2010 to € 6.59 in 2011. The increase has varied and mostly took place in the higher value market segments to € 12.04 on average.
Least affected were the lower rents which increased by 4.6% to € 4.50 per sqm per month. There is still sufficient supply of affordeable apartments with a tightening of the market within the inner S-Bahn ring line.

For support in the identification of the right real estate 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 Residential Market Report 2012

German Consumer Climate Index up in January 2012

At the beginning of 2012 optimisme has returned to the German Consumer. Both the outlook on economic development and the wish to spend have increased significantly while income expectancy remains stable on a high level.

These are the main results of the lates monthly GfK (Gesellschaft für Konsumforschung) study for January 2012. While the January index value is at 5.7 it is expected to go up to 5.9 for February 2012.

This develoment supports the recent development in the rental market for Residential Property where rents have gone up significantly in 2011, especially in Berlin.

German Consumer Climate Index up in January 2012

Ifo - German Business Climate Index January 2012 shows third rise in a row

Every month the responses of over 7000 businesses to the Ifo Business Survey, the confidence indicator frequently referred to as the Ifo Index is published. The January 2012 results show the 3rd rise in a row.

Ifo Business Climate Continues to Rise
Results of the January 2012 Ifo Business Survey

The Ifo Business Climate for trade and industry in Germany improved for the third time in succession in January. Although companies assess the current business situation as less favourable than in December, their business expectations have brightened considerably. The German economy has started the year positively.

The business climate improved in manufacturing. Manufacturers see their current business situation as slightly improved and their business outlook as clearly more favourable than in the previous month. Export expectations and personnel planning are also somewhat more positive once again. Capacity utilization in manufacturing is currently slightly lower than in autumn 2011. However, use of equipment and machinery remains above average.

In retailing the business climate index fell. The business situation here is no longer as favourable as it was in December. Moreover, retailers are more sceptical about their short-term business outlook. In wholesaling the business climate deteriorated slightly. The wholesalers surveyed continue to assess their current business situation as very positive, but less favourable than last month. Their business expectations are once again slightly more confident.

The business climate in construction improved for the third month in succession. The current business situation, however, is no longer as favourable as in the previous month. The constructors surveyed are nevertheless significantly more confident about their six-month business outlook.

Hans-Werner Sinn
President of the Ifo Institute

View the Full Report here.

For support in the identification of the right real estate 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

Ifo - German Business Climate Index January 2012 shows third rise in a row

Blow for Property Owners in Germany - Schlecker Insolvent

Germany's biggest drugstore / chemist chain "Schlecker" has filed insolvency.

"Schlecker" is operating many small chemist's shops in neighbourhoods rather that the big high street flag ships. They have larger shops in shopping centres as well but these usually have better coping mechanisms for replacing tenants.

For many property investors this insolvency will pose a problem as many of these shops are the only or one of few commercial units in predominantly residential apartment buildings. As there are not many other  potential tenants with a similar concept we expect pressure on the profitability of the properties hit by this event.

If you own a property with Schlecker as a tenant or are not sure, you should get in contact with your property management right now. If you are not happy with their performance in dealing with the issue we provide a performance improvement service to help you find an appropriate business partner with a good solid contract.

Blow for Property Owners in Germany - Schlecker Insolvent

Berlin 2011 in the TOP 5 most popular locations in Europe

In the Cushman & Wakefield annual Cities Monitoring Report 2011 Berlin now ranks among the five favorite business locations in Europe:

2011	2010	1990
1. London	1	1
2. Paris	2	2
3. Frankfurt	3	3
4. Amsterdam	6	5
5. Berlin	7	15

The third German city among the top 10 is Munich, which remained in 9th place, but Düsseldorf's rank dropped from 10th down to 14th. The rise of Berlin is particularly interesting looking at the longer term development starting from 1990. Berlin got bonus points particularly for its immense cultural offerings and its universities, combined with its tenant-friendly housing market.

The main expansion goal within Europe remains Moscow. The 501 largest companies in Europe were interviewed for this annually compiled report. 

The Berlin Residential Property Market has great opportunities but appears complex to the outsider. Knowledge of the local markets is important and independent advice is vital for Residential Property Investment in Berlin. We also recommend the Berlin Housing Market Report 2011 which can be downloaded from this Blog by following the link above.

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 2011 in the TOP 5 most popular locations in Europe

Residential Property in Berlin - Top of the Shopping List in 2011

Residential Property in Berlin is currently considered a very attractive investment by German and International Investors, especially Institutional Investors. This is the result of a recent study by the German Market Research and Consultancy firm Bulwin Gesa, Berlin.

The prospects for investments in existing properties in Berlin are considered "positive" to "very positive" by 92% of those investors taking part in the survey. For investments in new projects the figure was at 86%. Berlin is back on top after some years of slower business.

A comparison of the seven "A-Cities" Berlin, Düsseldorf, Frankfurt/Main, Hamburg, Cologne, Munich and Stuttgart the Berlin Property Investment Market for existing buildings showed Berlin at the top with 71% naming it as most attractive. It was followed by Hamburg with 67% and Munich 58%. For new projects however Hamburg, Munich and Frankfurt are in the lead (in that order) leaving Berlin ranking fourth with 58% finding it an attractive Investment Market for new residential projects.

Investors are expecting the highest rent increases. More than half of the investors are expecting that Berlin will have the highest rent increases in residential properties. Second and third rank are Munich and Hamburg with 23% resp. 11%. Looking at the two segments "existing" and "projects" Berlin is way ahead in the existing properties regarding the expected rent increase. This is caused by the low starting level compared to other major cities. For new projects the expectations are lower but still seeing Berlin in the lead with 45% followed by Munich (34%) and Hamburg (10%).

Asked for reasons why investors stayed away from Berlin in he past 35% subsequently named the low rent level followed by the complex market structure which requires good local knowledge. Also the relatively high vacancy rate in the past has kept some investors away.

BulwinGesa has interviewed ca. 100 German and International Investors for this survey. The survey was sponsored by six Property Companies in Berlin.



The Berlin Residential Property Market has great opportunities but appears complex to the outsider. Knowledge of the local markets is important and independent advice is vital for Residential Property Investment in Berlin. We also recommend the Berlin Housing Market Report 2011 which can be downloaded from this Blog by following the link above.

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

Residential Property in Berlin - Top of the Shopping List in 2011