The King Sturge Real Estate Economy Index for the German market dropped by 2.9% in March, the first time this year that sentiment has softened. But at 140.4, the index remains above its 2010 scores, King Sturge said. The main index was depressed by negative sentiment in the Investment Climate and Rental Income sub indices, which fell by 2.4% and 3.4% respectively.
The King Sturge Real Estate Economy Index for the German market dropped by 2.9% in March, the first time this year that sentiment has softened. But at 140.4, the index remains above its 2010 scores, King Sturge said. The main index was depressed by negative sentiment in the Investment Climate and Rental Income sub indices, which fell by 2.4% and 3.4% respectively.
'It is as obvious as it is plausible that a sense of unease has taken over for the time being,' said Sascha Hettrich, Managing Partner of King Sturge Deutschland. Hettrich deems this downtrend a temporary affair. 'Transaction markets are showing dynamic growth again as numerous international investors in addition to domestic ones are looking for attractive and safe investments here in Germany.'
In addition, commercial real estate markets have rebounded, not least because companies built up a demand backlog over the past three years, he said. 'Office rents are stable, vacancies are declining in many places, and the retail business will also benefit from the sound economic situation.'
