The Deutsche Hypo Index, which measures sentiment in the German real estate market, plummeted 11.7% in August from July, a drop not seen since 2011.
The Deutsche Hypo Index, which measures sentiment in the German real estate market, plummeted 11.7% in August from July, a drop not seen since 2011.
The index, which surveys 1,200 players from across the German real estate market each month, saw a decline in sentiment in all sectors. Residential, typically the most stable sector in the index, fell back 10%. The overall drop is the sharpest since 2011.
'Since then, although there were few undulations, all-in-all the real estate climate has moved steadily over the past three years. Until now', said Andreas Pohl, CEO of mortgage bank Deutsche Hypo.
'It was only a matter of time before the general deterioration in sentiment. The news presents us several trouble spots around the world day after day and this is increasingly reflected in the local economy. Wherever you look, there are worry lines. So it is not surprising that the Deutsche Hypo Index is now heading south.'
The bank emphasised that this single drop is, for the moment, too little to mark a trend.