Posts Tagged ‘market’

Germany overtakes UK as most active European commercial property market

March 26, 2017

Germany overtakes UK as most active European commercial property market

Germany overtook the UK as the most active commercial property market in Europe in 2016 with transactions totalling €59 billion, according to the latest research.

Although investment volumes declined 14% year on year, global real estate advisor Knight Frank reports that Germany was established last year as Europe’s safe haven due to its robust economy and relative political stability and the diversity of its property markets.

Approximately 55% of the total transaction volume was spread over seven key cities in 2016 of Berlin, Frankfurt, Hamburg, Munich, Cologne, Dusseldorf and Stuttgart with second tier cities such as Leipzig attracting unprecedented levels of investment.

Over 60% of investment transactions in 2016 involved German buyers, as competitive pricing started to price out overseas investors, the report points out, adding that occupier demand is characterised as strong, with Berlin and Munich recording rental growth and rents in Frankfurt remaining at a high level.

It is Berlin’s emergence as one of Europe’s pre-eminent creative hubs that has seen the city post record levels of office take up for the past three years, the report says, and as a result it is a compelling proposition for investors with transactions totalling €5.7 billion in 2016.

Germany overtakes UK as most active European commercial property market cd…

The report also points out that as mainland Europe’s leading financial centre, Frankfurt is host to more than 230 national and international banking institutions and in 2016 saw the highest level of leasing activity since the global financial crisis of 2007 with 530,000 square meters let.

Indeed, around €4.7 billion was invested into Frankfurt’s commercial property last year, and despite a restricted availability of office investment stock, the office sector attracted €3.3billion in capital.

Munich, meanwhile, is Germany’s second largest employment hub where around 30,000 jobs are created each year and this is underpinning strong demand for office space. A total of 780,000 square meters of office space was let in 2016, one of the highest totals ever recorded, and was the second most popular German destination among investors, with transactions totalling €5.5 billion.

‘Germany is one of the premier advanced economies in which to invest, and it emerged as the leading destination for real estate capital in Europe in 2016,’ said James Roberts, chief economist at Knight Frank.

‘The economic outlook remains strong, as it continues to lead the recovery in mainland Europe, although with a national election in September some investors may adopt a more cautious stance in the short term,’ he added.

According to Joachim von Radecke, head of the German Desk of European Capital Markets at Knight Frank, many property investors are attracted by the diversity in the German market. ‘With seven key cities all with distinct characteristics in terms of occupational demand this will continue to be a key differentiator for Germany versus other European markets,’ he said.

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Housing market confidence rises in the US, but is down on a year ago

March 23, 2017

Housing market confidence rises in the US, but is down on a year ago

Most households in the United States believe the spring season is a good time to buy a home but those in the rental sector are less confident, new research shows.

Some 80% of home owners are positive about the market, up from 78% in December 2016 but down from 82% a year ago, according to the research from the National Association of Realtors.

But just 56% of those who rent think it is a good time to buy, down slightly from 57% in in December 2016 and down from 62% a year ago.

Overall, younger households, renters and those living in the costlier West region where prices continue to rise, are the least optimistic, the study also found.

NAR chief economist Lawrence Yun pointed out that a lack of homes for sale, prices and rising mortgage rates are putting people off. ‘These factors are giving many renter households a pause about it being a good time to buy, even as their job prospects improve and wages grow,’ he said.

‘Unless there’s a significant boost in supply levels this spring, these constraints will unfortunately slow or delay some prospective buyers’ pursuit of purchasing a home,’ he added.

One promising trend that could alleviate supply shortages is a rise in the share of respondents this quarter who believe now is a good time to sell a home. Sone 69% of home owners think now is a good time to sell, up from 62% in the December quarter of last year and up from 56% in March 2016.

Continuing the trend over the past year, those in the West continue to be the most likely to think now is a good time to sell with 77% saying so and they are also the least likely to think it’s a good time to buy at 61%.

‘Demand far outpaces supply in many parts of the country right now, which means home owners will likely sell their home much quicker than the time it takes to buy another,’ said NAR president William Brown.

Germany overtakes UK as most active European commercial property market

March 23, 2017

Germany overtakes UK as most active European commercial property market

Germany overtook the UK as the most active commercial property market in Europe in 2016 with transactions totalling €59 billion, according to the latest research.

Although investment volumes declined 14% year on year, global real estate advisor Knight Frank reports that Germany was established last year as Europe’s safe haven due to its robust economy and relative political stability and the diversity of its property markets.

Approximately 55% of the total transaction volume was spread over seven key cities in 2016 of Berlin, Frankfurt, Hamburg, Munich, Cologne, Dusseldorf and Stuttgart with second tier cities such as Leipzig attracting unprecedented levels of investment.

Over 60% of investment transactions in 2016 involved German buyers, as competitive pricing started to price out overseas investors, the report points out, adding that occupier demand is characterised as strong, with Berlin and Munich recording rental growth and rents in Frankfurt remaining at a high level.

It is Berlin’s emergence as one of Europe’s pre-eminent creative hubs that has seen the city post record levels of office take up for the past three years, the report says, and as a result it is a compelling proposition for investors with transactions totalling €5.7 billion in 2016.

The report also points out that as mainland Europe’s leading financial centre, Frankfurt is host to more than 230 national and international banking institutions and in 2016 saw the highest level of leasing activity since the global financial crisis of 2007 with 530,000 square meters let.

Indeed, around €4.7 billion was invested into Frankfurt’s commercial property last year, and despite a restricted availability of office investment stock, the office sector attracted €3.3billion in capital.

Munich, meanwhile, is Germany’s second largest employment hub where around 30,000 jobs are created each year and this is underpinning strong demand for office space. A total of 780,000 square meters of office space was let in 2016, one of the highest totals ever recorded, and was the second most popular German destination among investors, with transactions totalling €5.5 billion.

‘Germany is one of the premier advanced economies in which to invest, and it emerged as the leading destination for real estate capital in Europe in 2016,’ said James Roberts, chief economist at Knight Frank.

‘The economic outlook remains strong, as it continues to lead the recovery in mainland Europe, although with a national election in September some investors may adopt a more cautious stance in the short term,’ he added.

According to Joachim von Radecke, head of the German Desk of European Capital Markets at Knight Frank, many property investors are attracted by the diversity in the German market. ‘With seven key cities all with distinct characteristics in terms of occupational demand this will continue to be a key differentiator for Germany versus other European markets,’ he said.