Vienna-listed real estate investor CA Immo plans to invest some EUR 300 mln in the Berlin and Frankfurt real estate markets in 2012.
In a recent announcement, the company said Berlin is particularly attractive as a business location as it has a comparatively low level of income and rents, a broad mix of industries and a growing service sector.
Chairman Bruno Ettenauer: ‘In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.’ Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector, he added. (more)
How Europe’s biggest economy grew employment during the crisis.
BERLIN, Germany — Unemployment is rising in most European Union countries, as the effects of crippling sovereign debt crisis, and the austerity measures prescribed to tackle it, take their toll.
Yet the bloc’s biggest and richest member has seemed almost immune to the effects of the crisis, particularly when it comes to its labor market. While dole queues lengthen in Spain, France and Greece, in Germany they are rapidly dwindling.
In fact Germany has seen the number out of work decrease to its lowest level since 1991. It’s a remarkable turnaround. (more)
Concerned about the euro zone crisis and suffering the pinch from painful austerity measures at home, de Vito is among many middle-class Europeans, especially from worst-hit Italy and Greece, seeking to shelter at least part of their life savings in property in the capital of the region’s strongest economy.
“I feel responsible for my two children and I thought I had to keep something for them while we are preparing for the worst,” said de Vito, a former court clerk who lives in a small town near Avellino and retired four years ago. (more)
Home sales in Germany rose by 22% in 2011 compared to the preceding year, with sales revenue of £8.6bn (€10.4bn) according to the German Real Estate Association (IVD).
The German property market, supported by cheap property prices and high rental rates, is attracting a growing number of property investors seeking high rental returns and potential room for capital appreciation. There is a huge rental market because Germans, in general, tend to rent rather than buy a home. (more)
CA Immo anticipates increased competition for tenants and investors in the Central European locations in 2012 and subsequent years. The commercial property sector will be decisively influenced more than ever by the factors of banking system stability and economic development in the individual markets and their ability to weather crises.
Germany: Berlin and Frankfurt compete for top position. Comparatively low levels of income and rents, a broad mix of industries and a growing service sector are what make Berlin particularly attractive as a business location. Dr. Bruno Ettenauer, Chair of the CA Immo Management Board says: “In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.” Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector. (more)
2011 is emerging as a record year for the German residential market. More than 220 large-scale residential portfolios were sold to international investment groups during the year versus 171 in 2010, the Patrizia Immobilien Group told OPP this week.These deals represented an investment volume of about €5.7 billion, global agency group Jones Lang Lasalle told OPP and “the most active buyers were institutional investors like listed companies, funds, banks, REITs, and fund managers.”
Companies like this nearly €4.4 billion of the total spend.And in leading commercial centres like Munich rents are also starting to reach new record levels. (more)
Germany has the financial clout, keeps on shopping
Germany looks to be in the best position of all of European countries, so they do not worry about the crisis.
Germany is the only country with the financial clout to rescue the Continent from its debt crisis, but the leaders in Berlin have ignored International pleas for decisive monetary intervention to put the crisis to rest, as they see no hurry necessary.
Germany’s export-oriented economy is humming along, the unemployment rate is at its lowest in 20 yrs.(more)
German companies expect more investment and job creation in 2012 in spite of the pervasive economic uncertainty in the eurozone, according to a survey of the corporate sector.
The relatively upbeat mood highlighted by the DIHK, the German chamber of commerce and industry, reflects a belief that Europe’s largest economy will escape recession in the coming year, even though prospects for growth have deteriorated and austerity measures in many neighbouring countries cast doubt on demand for German exports. (more)
The German economy is starting the new year in “downright robust” form, Economy Minister Philipp Roesler said in a newspaper interview Tuesday.
“Our economy is downright robust, even if the environment, both at an international and a European level, has become more difficult,” Roesler told the business daily Handelsblatt.
Wolfgang Franz, the head of the ZEW think tank and head of the so-called group of “Five Wise Men” which advises the government on economic matters, said Europe’s economic powerhouse would not fall into recession in 2012.
“I don’t fear a recession, certainly not one as deep as in 2009 when gross domestic product contracted by around 5.0 percent,” Franz told the Handelsblatt in a separate interview. (more)
Dec. 16 (Bloomberg) — German Environment Minister Norbert Roettgen rejected Economy Ministry calls to cut renewable energy subsidies in one of the biggest markets for the industry, saying it would hurt the nation’s goal of transforming its power use.
“It makes no sense to again politically question laws that have just been adopted,” Roettgen, a member of Chancellor Angela Merkel’s Christian Democratic Union, said today in Berlin. “Insecurity is poison for the energy transformation.”
Germany, the largest solar market in 2010, should lower the rates it pays for power generated with the technology next year to curb electricity bills, Economy Minister Philipp Roesler of the junior coalition Free Democratic Party has said. (more)