BERLIN — Germany’s unemployment rate dropped below 7 percent in May, the labor agency reported Thursday, as Europe’s largest economy performed well despite problems in the eurozone. However, the labor market’s momentum showed signs of slowing.
The jobless rate fell to 6.7 percent in May from 7 percent in April, with the total number of people registered as unemployed down 108,000 to 2.86 million — the lowest level since December. Compared with May 2011, there were 105,000 fewer Germans without jobs. (more)
May 23 (Reuters) – Sales in Germany’s construction sector will grow 4 percent in nominal terms this year, trade association HDB said on Wednesday, raising its forecast from the 2.5 percent predicted in January on the back of strong growth in residential building.
With growth in construction prices of around 2 percent, that should translate into a 2 percent rise in sales in real terms, the HDB added. Stable growth in commercial construction would also contribute to the rise.
The construction sector had a solid start to 2012 despite cold weather with sales up 1 percent in nominal terms. (more)
Rupert Watson, Head of Asset Allocation, Skandia Investment Group, looks at how the German economy is moving forward despite wider problems with the euro zone…
“Germany was reported to have grown at 0.5% in 2012 Q1, much stronger than expected. Germany continues to outperform the rest of the euro zone and most of the developed world. Indeed, with unemployment at the lowest in over 20 years and business and consumer confidence still very high, it is easy to see why Germany is still not feeling the rest of the region’s pain.
“The German economy continues to grow strongly, boosted by the strength of its exports to emerging economies such as China and steadily rising consumption. (more)
BERLIN — While the rest of Europe nervously peers at an insecure future, Germans are spending their evenings in long lines, hoping for a chance to buy or rent property before costs rise even more.
Since the euro crisis began, a Berlin housing boom has seen rents rise by 70 percent in posh districts, and 23 percent even in dicey areas. And this newly forming housing bubble is just one of many signs that the fortunes of Germany and the eurozone it leads have taken sharply divergent paths. As the euro crisis deepens, and more and more neighbors slip down the path toward economic perdition, it is increasingly obvious that the German economy is growing healthier. (more)
(Reuters) – Germany’s economy confounded expectations by posting robust growth in the first quarter of the year while France could summon up none at all and Italy slid further into recession, data showed on Tuesday.Gross domestic product in Germany, Europe’s biggest economy, rose by 0.5 percent on the quarter, bouncing back from a 0.2 percent slide in the last three months of 2011. France’s economy stagnated, although it grew slightly at the end of last year. (more)
BERLIN and AMSTERDAM, May 13, 2012 /PRNewswire via COMTEX/ — The global market for business services dropped over 20 percent year over year in the first quarter of 2012, but German-speaking markets still grew slightly, according to industry reports. Germany is a key destination for localized service providers seeking well-trained, multilingual staff.
“Germany’s economy is performing well despite uncertainty in Europe. Companies are looking to us as a safe haven for their investments,” said Dr. Josefine Dutschmann, business services expert at Germany Trade & Invest in Berlin.
GSW Immobilien AG (GIB), the German residential landlord that first sold shares to the public last year, will increase the number of homes it owns by as much as 13 percent this year to take advantage of rising rents in Berlin, Chief Executive Officer Thomas Zinnoecker said.
GSW will buy as many as 7,000 homes, raising the total to 60,000, Zinnoecker said in an interview at the company’s headquarters in the German capital. GSW purchased about 5,000 homes last year and plans to own 70,000 in the “medium term.”
“We won’t buy at any price, but there are some good opportunities, especially for portfolios valued at more than 60 million euros,” Zinnoecker said.(more)
(The following statement was released by the rating agency)
Apr 23 – The current rise in German residential real estate prices after two decades in the doldrums could potentially continue for the next two to three years, says Standard & Poor’s today in the report: “Why Germany’s Rising House Prices Are Bucking The European Trend.”
“This is likely to be fueled above all by an excess of demand over supply especially in the Western part of the country, low interest rates, rising employment, and lower household debt than in most other European countries,” said Jean-Michel Six, Standard & Poor’s chief economist for Europe. (more)
Berlin’s property market is booming – an increasing population and growing services sector are driving demand sky-high both for apartments and for offices. This is contrasted by a supply of property that has seen building solely on an “as-required” basis over the past few years and is scarce in many segments. This potential is increasingly enticing international property companies into the German capital and Austria also has a strong presence there.
Since taking over the German urban district developer, Vivico, in 2008, CA Immo has had a presence in Berlin with total property assets with a market value of about 519 million Euros. Just under half of this (222 million Euros) is accounted for by property assets under development. CA Immo currently has three development projects under construction in Berlin with a total investment volume of 194 million Euros. The Group also owns some 1.4 m sq m of land reserves (with planning permission) in the German capital, some of these reserves being large sites with the potential for residential construction. (more)