Wednesday, 8 November 2017

Investors favour Germany over UK for commercial real estate for first time

One in three (33 percent) commercial real estate investors have suggested that Germany is their preferred region to invest in, according to the latest BrickVest commercial property investment barometer. According to the latest market barometer of 3,500 professional real estate investors from BrickVest, the online real estate investment platform, suggests that more than a third of professional real estate investors are trending towards Germany as their preferred region to invest in. This is the first time that Germany has been chosen as the number one region to invest in, ahead of the UK which was selected by a quarter (27%).




The Barometer also revealed that UK, French, German and US investors are now less favourable towards the UK since last year.
BrickVest’s Barometer also showed that the investment objective for the majority (55 percent) of its online investors is capital growth compared to 33 percent who said income. This is a good explanation for the popularity of Berlin Real Estate despite yield compression - appreciation.

 


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Friday, 3 November 2017

There Could Be a Way To Avoid Capital Gains Tax for Apartments in Germany After 2 Years

If you have bought or are planning to buy an apartment or a house in Germany this could be very valuable information for you. The base of the subject seems very dry but the impact is potentially very significant: It is the subject of “Capital Gains Tax”.



Read more here:

https://www.linkedin.com/pulse/how-avoid-capital-gains-tax-apartments-germany-uwe-falkenberg/


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Thursday, 2 November 2017

Emerging Trends in Real Estate in Europe 2018



Berlin has been ranked the top city for investment and development for the fourth year in a row by Europe’s real estate community.

A joint survey by PwC and Urban Land Institute provides an outlook on real estate developments throughout Europe in 2018. The forecast is based on the opinion of more than 800 property professionals.



Some of the results:
German cities have four representatives in the TOP 10 with Berlin at No.1 coming as no surprise. Some of the other interesting placements:
2. Frankfurt and Copenhagen
4. Munich
5. Madrid, performing a jump up by 4 places
6. Hamburg and 7. Dublin, both kicked out of the top 5
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14. Paris
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27. London

The survey demonstrates growing optimism in view of the general macroeconomic development. Especially Germany and Berlin are highlighted:
'Germany has been steady state for a long time now. With Berlin, people truly believe it’s going to become a major city', a pan-European financier says.
The placement of London at the bottom of the ranking seems in contrast to predictions Savills published only recently: Savills: 2017 central London investment set to hit £20 billion – and could set new record.  But the uncertainty of BREXIT clearly reflects the outlook of the panel and could contribute to a self-fulfilling prophecy during 2018.

The DO and DON'T for 2018

Logistics and niche residential sectors such as student housing, senior living and healthcare are seen as the front-runners whereas anything retail is seen very critically.

The survey also addresses non-quantitative issues driving discussions and developments in the real estate community with Technology being top contender:

Key features of the report:



Major non-quantitative topics covered by the survey:

  • Risk and return in today's business environment
  • Alternative platforms
  • Markets to watch
  • Impact of Brexit - UK
  • Space as a service
The survey:

Emerging Trends in Real Estate®: Europe 2018

is available for download here.




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Thursday, 19 October 2017

Study: Eastern Germany's mid-sized cities are becoming increasingly attractive

TAG Immobilien AG Housing Market Report 2017

  • TAG Housing Market Report Eastern Germany 2017 analyses 27 large and mid-sized cities in Eastern Germany
  • Growing demand for housing in areas around major Eastern German cities
  • Increase in popularity and new residents drives up rents and purchase prices, while vacancy rates fall 
  • Household housing cost burden remains stable or even declines due to strong purchasing power growth

Hamburg, 18 October 2017 - Eastern Germany's housing markets are on course for further growth. Urban populations continue to expand while vacancy rates fall. As a result, rents and property purchase prices are increasing in many locations. The good news: "Despite the fact that rents are rising, dynamic purchasing power growth means that household housing cost burdens remain stable or have even declined in some places", said Claudia Hoyer, Member of the Management Board at TAG Immobilien AG. This has been confirmed by the "Eastern Germany Housing Market Report 2017", published by TAG Immobilien AG today. As with last year's study, the real estate consultancy firm Wüest Partner Deutschland analysed data from 27 large and mid-sized cities in Eastern Germany, including data on population and economic growth, rents and purchase prices, property yields and the financial burden of housing costs across the region.
The report also includes interesting details about the development of gross yields and price development in Berlin.


Further findings, including the complete Housing Market Report Eastern Germany 2017, can be downloaded for free here.






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Thursday, 12 October 2017

Winning in Growth Cities - Cushman Wakefield Report 2017 and Outlook 2018






Key global cities are winning the race for investment – but which ones? The ‘Winning in Growth Cities’ report, published today, is an annual survey looking at global commercial real estate investment activity.


Key Highlights

  • Global property investment rose to $1.5tn in the year to June.
  • Led by New York, the US dominates the ranking of global cities but Asian markets made the most impressive gains in the past year.
  • London is still the number one global market for cross border players. Paris closed the gap in third place but German cities are the ones to watch.
  • While gateway cities again dominated, with the top 25 taking nearly 50% of the market, tier two cities have taken market share.
  • The economic background is more encouraging for real estate than many expected, with global growth forecasts raised by the IMF for the first time since 2011.

One of the key factors determining which cities will out perform is technological change. Developments such as virtual reality and big data are set to enable more rapid change and will start shaping cities and tenant demand within months rather than years.

This report aims to identify some of the key enablers and emerging technologies and looks at what will determine which cities are the winners in this radically shifting environment.

For Germany and especially Berlin we support all activities regarding property investment with our experience and specialized network of property professionals.

Download the PDF


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Monday, 2 October 2017

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.


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Monday, 18 September 2017

City Ranking in Germany for 2017 With Some Surprize Stars in The East

After 2015 the HWWI (Hamburgische Weltwirtschafts Institut) and Private Bank Berenberg have published their City Ranking 2017.



It looks at the 30 biggest German cities using a selection of indicators to determine the dynamics and direction of their development. There are quantitative indicators like demographics and an approach to qualitative indicators like the share of "high skills" jobs in the total number of jobs.
I don't want to make this too dry to read but there are some questions regarding the value of the findings: The indicators are ranked by the diversion from the statistical average for each indicator and then compiled into a summary indicator providing the overall ranking. So 100 new jobs in a city of 500,000 has the same impact as 500 new jobs in a city of 3.5 million.
It still provides an interesting insight into the general direction of the development of cities as well as their surroundings as cities have a growing importance for the development of their region.

So here is the ranking for 2017 in comparison to 2015:

The most remarkable result has to be Dresden, the capital of Saxony going up by 6 ranks and Leipzig in the same state moving up to No.2, both Ex-East-Germany.

Both cities have been the darlings of Anglo investors about 10 years ago driving up prices for investment properties.Subsequently many have abandoned the locations due to high vacancy rates which are now disappearing because of a turn-around in the job market in the region.

The full report is available here: City Ranking 2017


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