From January to September, investment property sales amounted to 23.4 billion euros. |Photo: Shutterstock
2 min read Last updated: October 7, 2024 | 5:44 PM IST
Transactions in Germany’s huge but troubled property market rose slightly in the first nine months of this year, JLL said on Monday, as global real estate companies and industry leaders warned that the recovery in Europe’s biggest economy would be slow. This is shown in the data.
Investment property sales from January to September were 23.4 billion euros ($25.66 billion), up 5% from a year earlier, showing signs of bottoming out after two years of market collapse during which the country experienced its worst real interest rates. increased. The first real estate crisis in decades.
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According to JLL, central bank interest rate cuts in both Europe and the United States are helping to stabilize the situation, and the decline in commercial and residential real estate prices is starting to subside.
Helge Schuenemann, head of research at Germany’s JLL, said: “However, this will not result in a sudden, fireworks increase in sales; from a neutral point of view, we will see a gradual increase in sales, without exaggeration or unrealistic fantasies.” We can only hope for a rapid recovery.”
For years, real estate in Europe, especially Germany, was booming, but a sudden spike in interest rates and construction costs after the pandemic drove some developers into bankruptcy as bank loans dried up and deals froze.
Germany has so far been the hardest hit in Europe by the real estate crash that has also hit China and the United States.
JLL’s data was released as real estate industry leaders gathered for an annual conference in Munich, as the market faces its third year of crisis.
This ambiguous atmosphere was captured on the cover of German real estate magazine Immobilien Zeitung, which showed a group of office workers wearing party hats grimacing.
“Now the mood is changing,” said Rolf Buch, CEO of landlord Vonovia, one of the country’s real estate giants.
“But we are still at a low bar,” he added during the panel discussion.
German Housing Minister Clara Geywitz noted that despite some positive indicators, building permits were still declining and “this is something we have to deal with.”
(Only the headline and photo in this report may have been reworked by Business Standard staff. The rest of the content is auto-generated from a syndicated feed.)
First published: October 7, 2024 | 5:44 PM IST
