Real Estate Market Europe July 2009

Real Estate Market Europe July 2009

I. Situation in Germany - Juli 2009:

1. Investment volume in Germany went down from 57,5 bn € (2007) to 19,9 bn € (2008) to reach 3,3 bn € (1. + 2. q. 2009)
2. No (few) transactions - at least no package transaction and only few single transactions
3. There are no buyers, no finance and no sellers - the market is death and there is spooky quietness among the market players.
4. Investors wait until they have accumalted enough equity
5. Banks are still administrating their (doubtful) loans
6. And the pressure to sell the distressed porperties is not yet high enoguh.
7. The market is in a position of waiting. When do the banks start to sell its distressed properties.
8. The market is blocked like a clogged pipe which will burst, for sure. The question is when?
9. Potential active buyers: Private Investors, insurance companies, capital investment companies / investment trusts

II. On the other hand Deka Bank reports ON EUROPE that:

1. The window for anti-cyclical investment is opening at the moment
2. It stays open until 2011. So investors do not have to hurry up with their investment decisions
3. The average European prime yield for offices will go up from 5.9 to 6.4% until the end of 2009
4. It will decrease again to 5.8 % until 2013
5. London yield has increased from 5.3 - 7 % in this year
6. Madrid yield has increased from 4.1 - 5.9 % in this year
7. Due to the notable increae of yields in these core markets Deka sees huge potential to realize benefits in these markets until 2013

Source: faz.net