The King Sturge Real Estate Economy Index for Germany continued its upward trend in October at a steady, if slackening, pace compared to the previous month. The survey-based Real Estate Climate improved for the sixth consecutive time, now equalling 78.2 points (previous month: 75.6).
The King Sturge Real Estate Economy Index for Germany continued its upward trend in October at a steady, if slackening, pace compared to the previous month. The survey-based Real Estate Climate improved for the sixth consecutive time, now equalling 78.2 points (previous month: 75.6).
When compared to the 17% hike in September, the latest increase of 3.4% highlights the risk awareness of the polled real estate players, King Sturge said. The upward trend of the Real Estate Climate relies primarily on the Investment Climate. At 90 index points, this indicator for purchase and investment decisions exceeds the September value of 84.4 points by 6.6%.
The Real Estate Economic Situation - which is based on macro-economic data - has continued to rise and now stands at 146.8 points (after 142.6 the previous month), an increase of 2.9%. This is the finding of the October poll that the independent consultancy firm of BulwienGesa conducted on behalf of King Sturge among 1,000 market participants.
'The real estate investment market is clearly surging,' said Sascha Hettrich, managing partner of King Sturge Deutschland. 'While the foregoing months were defined by a process of probing the diverging price targets of buyers and sellers, we now seem to see a rapprochement in face of stabilising top yields. Higher transaction volumes suggest that the gap is narrowing and that we might expect another increase in turnover for the last quarter of the year.'
