The upturn in the German economy has boosted the sentiment in the country’s real estate industry, real estate consultancy King Sturge said on Monday. The poll-based Real Estate Climate of the monthly King Sturge Real Estate Economy Index rose by 5.1% to 126.3 index points in September, from 120.2 the previous month. This is a new all-time high in the history of the survey, which started in January 2008.
The upturn in the German economy has boosted the sentiment in the country’s real estate industry, real estate consultancy King Sturge said on Monday. The poll-based Real Estate Climate of the monthly King Sturge Real Estate Economy Index rose by 5.1% to 126.3 index points in September, from 120.2 the previous month. This is a new all-time high in the history of the survey, which started in January 2008.
Compared to the month before, which was up 8.6% month on month, the improvement in sentiment has slowed slightly. ‘The majority of the roughly 1,000 market players polled for the survey rate the situation in Germany’s real estate industry as positive, and this verdict is reflected in an index score above the 100-point threshold,” Kind Sturge said.
The main driver of the Real Estate Climate’s September issue was the Rental Income, which was up 7.9% to 117.3 index points, up from 108.7 points. King Sturge said this suggests that market players have identified the biggest development potential in floor space demand and possible rent hikes. The Investment Climate, a sub-index of the Real Estate Climate indicating the level of acquisition and investment decisions, rose by 2.6% to 135.6 index points, from 132.1 a month earlier.
The consultancy did warn, however, that there are threats to recovery on the horizon. ‘The most recent dip in Ireland’s economic output was remindful of the fact that the crisis is anything but over. Large national economies such as those of the United States, China and Japan show signs of cooling off,’ said Sascha Hettrich, Managing Partner of King Sturge Deutschland.