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Dear readers,
“Demand for real estate remains high, due quite simply to a lack of alternative investments. However, the coronavirus pandemic has caused a shift in demand for the various asset classes – much to the detriment of retail, where investors have shown a cautious approach. Barely any new properties are being financed in this asset class, with market activity mainly focused on extensions. Hamburg has also seen rising vacancies in the retail asset class as many of its smaller shops remain closed after lockdown. The investment market in Hamburg is centred on office properties, with interest remaining high, despite higher levels of remote work. Still, investors in this segment are moving from speculative projects to pre-let properties, preferably with a strong anchor tenant. Vacancy levels are extremely low. Few changes in future demand for space are expected, as interest in larger conference venues and meeting rooms will compensate for declining demand for individual offices. The Hamburg residential and logistics market remains stable.”
Thomas Hansen
Contact
Mr Thomas Hansen
Head of Hamburg Office
Phone: +49 40 376 550
E-mail: Thomas.Hansen@Deutsche-Hypo.de
The German real estate sector made considerable gains in the first quarter and continued this trend in the second quarter of the year. All in all, the REECOX Germany climbed by an impressive 8.4 % to 356.4 points, which marks a new all-time high in the history of the REECOX (since January 1991).
The REECOX Germany continues to perform positively across all input variables. The German benchmark index, the DAX, was also continuously positive from April to June and closed the quarter at 15,531 points. The German real estate index, the DIMAX, also made a significant contribution to the positive overall development, recording consistent price gains since March 2021 and closing June at just over 1,000 points. This equates to a quarter-on-quarter increase of 8.1 %. The positive development of the stock markets is also reflected in the German business climate as measured by the Economic Sentiment Indicator (ESI). Following a double-digit quarter-on-quarter increase of 13.0 %, the indicator closed June at a new all-time high of 117.2 points.
Country | Stock Index | Real Estate Economy Index | Economic Indicator | Base Interest Rate | Interest Rate 10-Year Government Bonds | Q1-21 | 04/21 | 05/21 | Q2-21 | Delta (%) Q1-21 / Q2-21 |
|---|---|---|---|---|---|---|---|---|---|---|
DE | up | up | upup | eq | eq | 328.9 | 339.4 | 348.4 | 356.4 | 8.4 |
GB | up | up | upup | eq | eq | 203.0 | 217.0 | 219.5 | 219.9 | 8.3 |
PL | upup | upup | upup | eq | up | 181.7 | 191.4 | 197.6 | 197.8 | 8.9 |
NL | up | up | upup | eq | eq | 188.2 | 197.4 | 201.7 | 204.3 | 8.6 |
FR | up | up | upup | eq | up | 229.0 | 237.3 | 244.8 | 245.0 | 7.0 |
ES | up | up | upup | eq | up | 175.1 | 181.2 | 184.1 | 183.4 | 4.7 |
