The mood on the property market continues to brighten, with leading institutes registering increasing optimism and positive figures. This is good news after many months of uncertainty.
Deutsche/Hypo and the bulwiengesa AG research institute measure the perceived property climate with a broad-based survey on the property climate. The analysis of around 1,000 property experts surveyed again shows a positive trend in November. The Real Estate Climate climbed for the third month in a row and positioned itself at 97.8 points in the 203rd monthly survey, up 3.5 per cent.
The aim of this survey is to determine an accurate picture of the mood in the property sector. Project developers, investors, banks, insurance companies, operators, service providers and consulting firms are asked about developments in the five established property asset classes: office, retail, residential, logistics and hotel. In addition to economic facts, psychological elements are also included in the decision-making process.
The latest update of the German Real Estate Index (GREIX), a joint project of the expert committees for property values, ECONtribute and IfW Kiel, also raises hopes. The recovery on the German property market is continuing in the third quarter of 2024. Prices for condominiums and single-family homes rose again compared to the previous quarter (Q2 2024) and even increased year-on-year. A comparison by year of construction shows that prices for new-build flats are already close to their peak again.
"The German property market confirms the signals from the previous quarter that purchase prices for private residential property have bottomed out after the recent, drastic crash and are now picking up again," says Jonas Zdrzalek, property expert at the Kiel Institute for the World Economy (IfW Kiel). "However, the momentum is still somewhat restrained and there are no signs of a renewed boom."
Tip: All data for currently 19 cities and their districts as well as the Rhine-Erft district are freely available at www.greix.de.
Photo: © Congerdesign, Pixabay
