The December survey of the monthly King Sturge Real Estate Economy Index shows a considerable, across-the-board upturn of indicators - including the subjective sentiment barometers along with the macro-economically driven Real Estate Economic Situation. The poll-based Real Estate Climate gained by 6.6% in December, climbing from 79.8 to 85.1 index points.
The December survey of the monthly King Sturge Real Estate Economy Index shows a considerable, across-the-board upturn of indicators - including the subjective sentiment barometers along with the macro-economically driven Real Estate Economic Situation. The poll-based Real Estate Climate gained by 6.6% in December, climbing from 79.8 to 85.1 index points.
This means that the sentiment rating of the real estate industry has doubled in the course of 2009 (year-end figure 2008: 42.2 points). The latest rise is powered mainly by the Rental Income indicator which grew by 10.0% and now stands 75.5 index points (compared to 68.6 last month). The real estate experts participating in the survey believe that 2010 will bring a heightened floor space demand and more dynamic rent rate development.
The Investment Climate, the second sub-indicator of the Real Estate Climate, measuring sentiment in regard to purchase and investment decisions, rose by a moderate 4% to 95 index points (previous month: 91.4). The findings are based on a survey of roughly 1,000 market players conducted by independent market research institute BulwienGesa on behalf of King Sturge.
Notwithstanding the clearly brightened mood, the crisis is far from overcome. 'Economic forecasts for 2010 are anything but euphoric,' said Sascha Hettrich, managing partner of King Sturge Deutschland. 'Word has it that the economic recovery will progress haltingly. Chances are that the financial markets will continue to harbour incalculable risks, and that new trouble is brewing on the labour market. That said, there is ample reason to get hopes up and to face 2010 with optimism.'
