German Business Confidence Reaches a 7-month High
German business confidence hit a seven-month high in February, according to the latest survey from the Ifo Institute.
Its business climate index rose for the fourth month in a row, rising to 109.6 points from January’s figure of 108.3. More companies reported a favourable business situation than in January. They expressed greater optimism about their business expectations for the fourth time in succession. The German economy is currently supported by domestic demand.
The increase was greater than had been expected.
Ifo said solid domestic demand was protecting German businesses from the worst effects of the debt crisis in the eurozone.
"Austerity measures in the rest of the eurozone and the February freeze: it looks as if almost nothing can shatter German business optimism”
"Today’s Ifo index provides further evidence that the German economy only made a short stopover at the end of last year."
The German economy shrank by 0.2% in the last three months of 2011, although it grew by 3% in the full year.
Economists are confident that it will grow in the first three months of 2012, avoiding a recession.
"With Germany back to growth, weaker countries can benefit from increased demand for imports and should also return to some expansion later this year," said Christian Schulz from Berenberg Bank.
"However, ongoing austerity will continue to hold back economic growth."
Source BBC Business
Latest IFO report
Wuppertal – City Focus
In last month’s update we started our focus on the Rhine-Rhur area of Germany. This area has our attention as we explore high yielding property investment markets. At the centre of this region lies Wuppertal, a University City with a strong manufacturing based economy and sustainable 10%+ yields – in the context of the economic outlook for the country, we think this city is one to take a closer look at … read on to find out what makes Wuppertal worth a look.
Ryan Air Speads Its Wings at Leipzig Airport
Ryan Air announced new routes from Leipzig Airport, having opened its operation there in November of 2011. The routes are now: London, Rome, Milan, Malaga and Sciliy. The new Leipzig airport is growing at a pace, flying to many routes around Europe. Airport staff now nuber nearly 6000, a 13% year on year increase and excellent news for the region as it develops as a passenger destination and a hub for logisitics with DHL having their European Headquarters here.
Germany In the Spotlight
38% of investors consider Germany a ‘very attractive’ location for real estate investments, another 61% consider it an ‘attractive’ location, according to a recent survey. This compares to 33% and 57% respectively in the previous year. The Ernst & Young (E&Y) Real Estate “Trend Barometer: Real Estate Investment Market 2012″ further shows that 52% of investors consider Germany ‘very attractive’ if compared to other European countries (previous year: 54%) and 47% (32%) as ‘attractive’.
E&Y Real Estate expect a “normal, but good year” with a transaction volume of 27 to 30 billion Euro, which would keep it approximately on the same level as 2011 (28 billion Euro). There will be a stronger focus on residential property than in 2011, 69% of the survey participants expect this asset class to be the most favoured one (2011: 44%). Retail properties also enjoy an increased interest: according to 51% of the surveyed investors, this asset class will be in strong demand (2011: 36%).
Interest in office properties has, however, declined – 14% of investors have a strong investment focus on this segment, as compared to 20% in 2011. 27% of the survey participants expect increasing prices in top locations, 64% expect stable prices.
While 99% of the participating investors consider the German property market to be ‘attractive’ or ‘very attractive’, the response was not so positive for other European real estate markets. The majority of participants expects a decline in transactions due to the Euro crisis.
Latest Property Offers
279,000€ |
Potential Yield: 10.15%
Type: Residential
Approx. Size: 505 sqm
Situated in the bustling city of Wuppertal, this residential property, set over 5 floors, contains 9 apartments. is located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1957 it underwent renovations to the façade, electrics, flooring and some bathrooms in 2010. The apartments all have decentralised gas heating.
269,000€ |
Potential Yield: 10.95%
Type: Residential
Approx. Size: 505 sqm
Situated in the bustling city of Wuppertal, this lovely heritage residential property, set over 5 floors, contains 6 apartments. is located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1900 it recently underwent renovations to the façade, electrics, heating and water pipes, flooring and new contemporary bathrooms. The apartments all have decentralised gas heating. All the surrounding properties are fully renovated and of a period style also. A very good location and a very good property.
1,389,000€ |
Potential Yield: 10.52%
Type: Residential
Approx. Size: 2662 sqm
Situated in the bustling city of Wuppertal, this residential property portfolio, set over 5 properties, contains 39 apartments. The houses are all along the same street in straight succession, and are located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1929 , the houses have undergone extensive refubishment, with 80% of the apartments fully modernised. Between 2005-11, 300.000 Eur was spent on new bathrooms, floors, ceilings and heating. The apartments all have decentralised gas heating, installed between 1995 and 2011, and all apartments have a balcony.
700,000€ | Leipzig
Potential Yield: 9.4%
Type: Residential
Approx. Size: 933 sqm
This is an investment into a stylish period property in a beautiful location in the heart of the wealthy district of Markkleeberg, just to the south of Leipzig City Centre.
18,000€ Guide Price
Type: Residential
Approx. Size: 29 sqm
A single unit in Kassberg, Chemnitz, located in a lovely quiet street. With a survey value of 23k Eur – delivery at auction. Tenanted. Contact us for more details.
25,000€ Guide Price
Type: Residential
Approx. Size: 35 sqm
Single tenanted apartment in Kassberg, Chemnitz. 33k Eur survey value. Delivery at auction – please contact us for more details.
35,000€ |
Potential Yield: 10%
Type: Residential
Approx. Size: 54 sqm
Single apartment in very good condition with balcony in Kassberg, Chemnitz. Please contact us for more details.
950,000€ | Chemnitz
Potential Yield: 10%+
Type: Residential
Approx. Size: 1773 sqm
A lovely building refurbished in 1996. Consisting of 29 apartments – all let at levels 15-20% below market. Balconies at the side of the building. Currently yielding 9.54%.
400,000€ | Chemnitz
Current Yield: 9.13%
Type: Residential
Approx. Size: 723 sqm
9 Apartments and 2 commercial units – fully rented. Refurbished in 1998. Please contact us for more details.
350,000€ | Chemnitz
Yield: 9.05%
Type: Residential
Approx. Size: 571 sqm
Refurbished in 2002, 9 fully let apartments in Schloss Chemnitz. Contact us for more details.
370,000€ | Chemnitz
Current Yield: 7.71%
Type: Residential
Approx. Size: 563 sqm
A great building in Kassberg, Chemnitz, built circa 1910 and refurbished in 2006. Consisting of 10 apartments – all let. Balconies fitted. Current average rent paid is 20% below market value – so potential for uplift. Contact us for more details.
980,000€ | Chemnitz
Potential Yield: 13.28%
Type: Residential
Approx. Size: 2430 sqm
4 adjacent multi-family houses. 52 residential units, 3 commercial units. Laminated flooring and tiles in kitchen and bathrooms. 3 of the properties were refurbished in 1998, one newly built. 3 of the 4 properties have balconies. Currently 7 flats + 1 commercial vacant – 10.5% yield at the moment, potential for 13%+ yield once vacant units filled.
580,000€ | Leipzig
Potential Yield: 8.06%
Type: Residential
Approx. Size: 868 sqm
This five-storey building consists of 13 residential units, and one commercial unit on the ground floor. With a highly distinctive and appealing exterior, and located in one of the most desirable areas in Leipzig, this is an extremely attractive property investment opportunity. Rents lie between 3.8 and 4.4 EUR per square metre, which delivers a yield of 5.29%. Tenant demand in this area is high, with the open green areas nearby, with the added convenience of the retail areas on the nearby Georg Schumann Strasse. Please contact us for details and expose.
625,000€ | Chemnitz
Potential Yield: 9.47%
Type: Residential
Approx. Size: 759 sqm
Built in 1910, this 4-storey building is located in one of the most desirable areas of Leipzig. Schleussig, just a few kilometres south west of the city centre, enjoys extremely high tenant demand due its close proximity to Clara Zetkin Park, and a self-contained high street with a quality range of shops and amenities.
Consisting of seven spacious residential apartments – ideal for families – rent levels currently range between 3.8 and 4.9 EUR per sqm. It is currently fully rented, and all tenants enjoy attractive balconies overlooking a landscaped backyard.
There is an additional attic foor, which holds considerable potential for possible development upon acquisition. Please contact us for details and expose.
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