Quarterly Report Q1-2019
Euro-Score starts the year positively

Dear readers,

the Euro-Score had a good start to 2019. The positive trend was observed in all six countries covered by the index. This type of almost parallel development has been seen before in the past, and clearly reflects the close relationships between the European countries.

We are also aware of those close connections in our day-to-day business: many investors are active across borders and pursue pan-European strategies. The economy as a whole benefits from the advantages of a united Europe. But that has not stopped the voices of Europe’s critics becoming louder – a worrying development. That’s why it’s more important than ever that we stand together for Europe – because it is the only way forward. We need the EU, for our economy and for lasting peace. That’s why I hope that we will embody the idea of a united Europe even more strongly after the European elections, and that the countries will move even closer together!

Kind regards,


Your Sabine Barthauer

Contact

Ms Sabine Barthauer
Member of the Board of Managing Directors

Euro-Score starts the year positively

The European Real Estate Economy Index performed negatively over 2018 as a whole, largely as a result of the clear negative trend in the fourth quarter. That makes the renewed positive development in the first quarter of 2019, which resulted in a slight recovery at the start of the year, even more welcome. Following negative development of the Euro-Score over four consecutive months, the trend was finally ended by a slight rise (+1.3%) in January. While that rise was almost completely cancelled out by a further fall in February (-1.1%), the positive trend continued in March (+1.3%). Overall, the first quarter was volatile but ended with an increase of 1.6% in the Euro-Score, leaving it at its current level of 236.8 points.

REECOX Eye Q1-2019

Deutsche Hypo Euro-Score

236.8

Real Estate Economy Indices for France and Spain see the greatest recoveries

The positive pan-European trend was generally observed in all the countries included by the Deutsche Hypo REECOX. Developments in France and Spain were particularly positive. Following significant drops in the previous year, they each saw a rise in all three months of the first quarter. Those countries also displayed above-average performance over the first quarter as a whole. In France the Real Estate Economy Index rose by 3.2%, while Spain saw an increase of 3.8%. The other countries saw decreases in individual months of the first quarter but, with the exception of the UK, none of those setbacks exceeded one percentage point.

Change of Input Parameters and Real Estate Economic Situations
Δ Q1-2019 / Q4-2018

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

REECOX Q4-2018 / Q1-2019
DE
upup
up
do
eq
do
up
GB
up
upup
dodo
eq
do
eq
PL
up
upup
do
eq
do
eq
NL
upup
up
do
eq
do
eq
FR
upup
upup
do
eq
do
up
ES
up
upup
up
eq
dodo
up