German B-cities to see big price rises, headed by Leipzig
Hefty price rises are expected in German B-cities such as Leipzig, Nüremberg, Wiesbaden, Münster and Hannover over the coming years, according to a survey carried out by market research institute IfaD among 1,380 registered participants at the upcoming Expo REAL in Munich from 8th-10thOctober, and commissioned by the organisers of the fair, Messe München. About 50% of respondents tipped Leipzig to be the biggest price-riser.
The researchers also asked respondents did they expect investment volumes in real estate to rise, fall or remain constant. The July reading of the Deutsche Hypo Index on investor sentiment had fallen to a new all-time low.
Nearly two-thirds of respondents believe that business will continue to grow, with 62% expecting further increases in transaction volumes, according to the head of Messe München, Klaus Dittrich. This year’s Expo REAL is expecting 2,041 exhibitors and nearly 42,000 visitors, a new record, said Dittrich.
Sabine Barthauer, board member at Deutsche Hypo, said of the phenomenon: “It almost looks like the upcoming Expo REAL is providing a boost of confidence to participants, who after four declines in a row on our index have now seen it jump 4.6%. So it’s increasingly difficult to really determine the direction of the market.
“Looked at from another perspective – international investors still view Germany as a solid investment destination and have difficulty understanding the “German Angst” which seems to be gripping our country. Even the European economic index REECOX rose in the second quarter – market sentiment and the real economy have actually grown closer together again.
“Of course the uncertainties about imminent geopolitical events, which could have a negative influence on our domestic economy, are not to be ignored. Still, we shouldn’t lose our clear orientation about it’s really all about, the heart of our business – property as a real asset in one of the most developed economies in the world.”