German Property Sentiment Surges in October

BERLIN-German real estate investment market sentiment surged in October, with the King Sturge Real Estate Economy Index continued its upward trend at a steady, if slackening pace compared to the previous month. The realtor’s Real Estate Economic Situation index rose 2.9% on the month.

“The real estate investment market is clearly surging,” says King Sturge MD Sascha Hettrich. “While the foregoing months were defined by a process of probing the diverging price targets of buyers and sellers, we now seem to see a rapprochement in face of stabilizing top yields. Higher transaction volumes suggest that the gap is narrowing and that we might expect another increase in turnover for the last quarter of the year.”

By contrast, the commercial letting market reported a regressive development as the letting market generally lags the economic situation. The Rental Climate, a subcomponent of the Real Estate Climate mirroring expectations of rents and returns, dropped slightly by 0.3% in the month.