Real Estate News 2020 / 2019

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# Real estate prices will continue to rise on the German market in 2020

Real estate prices have risen continuously in the past 7 years. The property price index peaked in the residential property sector at the end of 2019. And prices on the German real estate market continue to rise, already in the fourth quarter of 2019 the market rose by 6.3%.

The market for commercial real estate was very similar in 2019, with commercial real estate increasing by 6.0%, particularly in the last quarter of 2019. In the office real estate sector, by as much as 8.9%. Retail properties, on the other hand, lost 0.2%.

Brief report KI - Kreth real estate. Media 2020

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# A hire-purchase model for low-income families - the state makes it possible for you!

# After the state reintroduced construction-related child support in January 2018, the state is planning something new for you. * You can find information on this in another article on this page.

No kidding, you could soon afford a condominium. How should that work ask yourself? Who will be considered in this model? Families under 40 years and with children. Example of financing: 212,000.- € uro for a 100m² apartment.

version 1

2 adults + 2 children, duration 24 years, monthly rate 933.- € uro.

or variant 2

2 adults + 2 or 3 children at a monthly rate of € 756.- over a period of 33 years.

The state would be the builder for you and the apartment would buy you as a hire purchase through regular installments from him over 24 or 33 years term. Who is the project for? For families under 40 who have no significant equity. So you would become the property owner over the years as a tenant.

Why does the state do it for you, you ask yourself? Currently, there is still an acute lack of housing, which the state wants to cover in the long term with this project model.

* For information, see: State-subsidized rental space.

Summary report KI - Kreth real estate. Medien 2019 

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# Germany still has an acute housing shortage.

According to the current study, far too few new buildings / apartments are being created, especially in the 8 major cities in Germany. Thus, this results in a study, e.g. in Cologne since 2016 not even 46% of the needs are covered. In Stuttgart, only 56% of the housing requirement has so far been met, with only Munich with 67%, Berlin with 73% and Frankfurt / Main with 78% being able to cover the demand somewhat.

Even in the Unistads there is still an immense need for housing, unfortunately, the influx of students was hardly considered.

Strict regulations in the construction industry, shortage of labor at the building authority and the lack of qualified craftsmen ensure that the construction industry hardly comes behind to catch up and meet the required housing needs in the cities.

Summary report KI - Kreth real estate. Medien 2019

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# Hamburg # Social housing is raised

Hamburg will approve even more social housing in 2019 as before.

HH is a federal state that puts its priorities on affordable housing. The Alliance for Housing writes program. This means that even low-income tenants can afford housing in HH.

For builders, there are various funding programs, these have been increased by 2%. Rental space can be created here which will be between 6.60.- and 8.70.- € uro per m².

From 2011 onwards, more than 20,000 apartments have been subsidized by the Senate.

The total number in 2019 should amount to 79,000 dwellings and increase to 84,000 by the year 2026. For future tenants, this creates better opportunities to rent affordable housing.

Summary report. KI - Kreth real estate. Medien 2019

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# Baukindergeld 2018 was introduced.

Around 50,000 families have so far only applied for the newly introduced Baukindergeld.

How does the new concept work? The state provides around 3 billion € uros annually.

Who can apply for a Baukindergeld? Families with children who want to buy a condominium or a house or build their own house. Around 1,200.- € uro can apply for a family with one child per year and receive over a total period of 10 calendar years, making a total of a subsidy of 12,000 € uro per child.

The income limits for single parents and families have been set at € 90,000. For larger families, the standard rate may exceed 15,000 € uro.

Who can apply for this grant? Single parents and families with children who have been granted planning permission from January 2018 or have signed a purchase contract for an ETW or a house from January 2018 can also apply for a subsidy retrospectively.

Start of the sponsorship of the Baukindergeld has been January 2018.

* You can find information about this under: Applying for construction child allowance.

Summary report.KI - Kreth real estate. Medien 2019

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# Frankfurt is experiencing a new HIGH in 2018.

Investors are tearing up office real estate in Frankfurt. This is how Frankfurt experienced a new investment in 2018. A total of € 10.2 billion was invested in office towers.

As a result, in 2018, a + increase of 36% on the previous year in 2017 in the acquisition of office real estate in Frankfurt.

Frankfurt has been high on the agenda since Brexit. Offices, logistics Real estate and retail properties were bought by the investors, but not only the Germans invested in real estate in Taiwan and the South Koreans have Frankfurt for themselves as an investment city discovered and invested several hundred million € uro in office complexes in Frankfurt

Summary report. KI - Kreth real estate. Medien 2019

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# The real estate BOOM is continuing. The trend continues to grow strongly.

According to the survey, Germans prefer to live in property instead of paying rent.

A poll showed that Germans prefer to live in their own homes instead of paying rent. Affordable rental apartments have become a rarity.

For rent live decidedly just = 6.2%

Rather decided to rent instead of ownership = 5.7%

Undecided for rent or property = 4.5%

Living in property as desire = 20%

In any case, buy your own property = 63.6%

Survey August 2018

Summary report. KI - Kreth real estate Medien 2018

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# 2018 - Leipzig, Dresden and Chemnitz.

Residential real estate.

Development and adjacency of the B and C locations in the residential real estate sector. The demand for 100 m² apartments is growing, the average purchase price is 2,800 €uro per m² and the rent index is now 12 €uro. The most popular district is Kaßberg.

office properties

The average office rent here is  7 €uro per m² / the maximum rate that could be achieved was € 12 €uro per m². As the market has a lack of real estate, increases of 16 subjects to 20 subjects / years will be expected for the next 2 years (2018-2020). expected.

Retail space

Retail space is currently stagnating, with 1 A retail space under 120 m², a rent index of up to 60 € uro per m² can be achieved. For larger areas up to 30 € uro per m².

Leipzig, Dresden and Chemnitz are on the rise. The demand for real estate is greater than the stock yields. On average, 6% - 7% of returns are expected

Summary report. KI - Kreth real estate Medien 2018

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# Retail - Retail 1st Quarter 2018

Retail has already achieved a 25% decline in sales in the first quarter of 2018. So far only a transaction turnover of € 1.69 billion was achieved. This is the weakest result of the last 2 years so far. Here, investments were made mainly in retail and specialty store centers.

Shopping centers have achieved a market share of 17%, but in the total package as of the previous year, the transaction volume in the first quarter of 2018 has so far declined by around € 650 million.

The largest investment was invested in a direct city comparison in the first quarter in Hamburg with just under € 238 million. The trend of Retail Investments is clearly in commercial buildings in 2018, with a plus of 31% / € 532 million. In contrast to 2017, only 23% / € 507 million were achieved.

Supermarkets followed so far with 7% market share and department stores with 5%.

Foreign investors participated in the first quarter with a 35% market share.

The main investors in 2018 were so far with 38% market share / € 650 million uro fund and fund companies.

It remains to be seen how the year 2018 in Retail Investment Real Estate will continue to develop.

# Summary report. KI - Kreth real estate - Medien 2018


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# Logistics real estate investment 1st quarter 2018 the boom continues

Already in the first quarter of 2018, logistics real estate / investments are already achieving sensational sales figures.

Domestic and foreign investors invested about € 1.46 billion in logistics, which could well be another record year in 2018. The German investment market boom continues.

Compared to the first quarters of the previous years, 2018 already achieved a plus of 35%.

The top 5 transactions came in at 61%, similar to the previous year.

To date, a result of € 800 million in transactions has been achieved in the top 7 markets.

In Berlin alone, around € 290 million was invested in logistics and industrial real estate in the first quarter.

# Summary report. KI - Kreth real estate - Medien 2018

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# Real estate bubble in Germany? None of it in sight!

Already 2 years ago, the media speculated about a potential real estate bubble. But even in 2018, the building society confirms that no real estate bubble is in sight.

On the contrary, the € 30 million in building society contracts / financing was again achieved in 2017 in a goal-oriented manner, and our real estate financing will not give rise to any real estate bubble for the time being.

For young families, the low interest rate remains tempting to buy their own home.

The building society has been able to generate an increase of 10% in sales in the first few weeks of 2018.

It remains to be hoped that the coalition will keep its word and introduce a Baukindergeldzuschuss for families - or introduces a tax allowance on land acquisition tax for the first property purchased.

# Summary report. KI - Kreth real estate - Medien 2018 

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# London office investment

The Brexit has obviously done nothing to London, at least the office real estate remain as in demand as before.

Lucrative returns of 4.25% remain with investors.

If one compares offices in Paris or Berlin with London, one stands thereby definitely better. In Paris & Berlin, just 3.1% return can be expected.

In Hong Kong & Tokyo, only 2.6% to 3.2% return can be expected.

# Summary report. KI - Kreth real estate - Medien 2018

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# The Chinese are conquering the German housing market

The Chinese are becoming increasingly wealthy and are now happily investing their money in the German housing market. But why in Germany? Despite wealth, the apartments in China are hardly affordable for the Chinese.

According to forecasts, by 2022 about 76% of Chinese citizens will belong to the upper middle class.

In addition to standard apartments / prices between 250,000.- to 400,000.- € uro, the apartments are also very interested in luxury apartments in Germany.

The Chinese in Beijing & Shanghai are only allowed to own one property.

That is why the money is gladly invested by the Chinese in foreign real estate.

# Summary report. KI - Kreth real estate - Medien 2018 

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# Hamburg Harbor City 2018

What's new in the most beautiful city in the world? The Elbe Tower ......

After the Elphi follows the big brother, the Elbtower. He should become big and powerful. He should be 235 meters high. Cost € 700 million uro. Location between the Norderelbe and east in the HafenCity.

What will await us?

A tower mixed with apartments in the middle part, downstairs office space and a 4 star plus hotel will be built here. 2700 - 3000 people are to find a job in the Tower.

Start of construction 2021 - completion is planned 2026.

# Summary report. KI - Kreth real estate - Medien 2018

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# New living trend with a future - Co Living

What is that supposed to be ? We live in a fast-moving time that we want to design flexibly, professionally or privately.

We do everything we can to use our time effectively, so the market invented a new home trend - Co Living. A residential complex, built like micro apartments or similar to a student dorm but with flexible housing.

Target group:

Students, traveling workers / temporary workers, interns who want to continue their education in their professional life. Tenants who do not want to commit themselves to one place in the long term and in order to be flexible in the long term. Students or interns who are not

Hotel can afford. That's why the living trend - Co Living will quickly prevail in the market. Tenants who want to conclude only short leases in a furnished apartment. This is co-living. Residential complexes - where these target groups can effectively exchange and develop each other - career people.

# Summary report. KI - Kreth real estate - Medien 2017

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# Prefabricated houses are in full swing, whether as a private investor in the home or as an investor / yield object

# Prefabricated houses are in vogue!

We live fast, so we like to invest our time effectively. Everything that helps us to get more time from our remaining free time, we use. Online shopping - We Hamburger is the only state that spends its time online shopping at night. Living, the demands increase more and more - luxury for a small price.

Why waste months of waiting if we can have a massive prefabricated house? We learn to think practically and invest our precious time in things that are useful and beneficial to us. Whether you want to fulfill your long-awaited dream to create your own empire or build an investor as an investor to rent it as an investment. First of all, existing properties have to be rebuilt, a lot of lead time has to be invested and, in addition, mostly unplanned high costs are incurred. That's why the prefabricated house is booming - massively built but new, no worries and a happy and quiet future experience - that is what we want - time effectively use!

And invest our money safely.

# Summary report. KI - Kreth real estate - Medien 2017 

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# Retail - retailers are redecorating.

# Retail is restructuring.

Anyone who wants to be in a sales trend today has not only a store but also an online shop at the same time. Even online retailers already have an additional store or are about to build one up. The target group is just too broad to focus on one thing, the competition does not sleep and who wants to survive in retail must be well structured. The customer insists on a 24 hour service.

He does not want to be tied up in order to invest his money, nor does he want to forego quality offers around the clock.

The federal state of Hamburg e.g. uses the time at night to order online. Retail is still booming. Accordingly, the demands of the customer increase. Over the last 20 years, more than 250 billion luxury goods have been purchased. This is not about being able to say banal who I am - but what can I afford. Online purchases - Logistics Store Direct sales, both must be combined today to serve these clientele clientele sufficient. The world unites, so it is possible for us through online shops 24/7 around the clock to be able to shop worldwide. If you look at the investment market, you have to say that logistics real estate and retail real estate in the retail sector are in second place for the investment investment, followed by offices.

These properties will remain a safe and lucrative investment in 2017 as well.

# Summary report. KI - Kreth real estate - Medien 2017 

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# World market leader - Germany is at the top of the world ranked # 1

# Germany is the absolute market leader Worldwide - in property trading. When it comes to investment properties, we invest our capital in real estate and are ranked first. Germany invests in real estate like no other in this market. As a home or as a solid and profitable investment uses the United Kingdom 63, 5% Germany 51, 9 % Switzerland 80, 0% of its real estate as residential real estate, the remainder being used as an investment investment.Platz 1 Germany - In 2016, more than 60 billion euros were invested in real estate in Germany.Place 2 Great Britain - In the United Kingdom in 2016 over Invested in real estate for € 59 billion in real estate. "Germany is known as a safe haven for real estate investment" Politicians are even considering taxing the first purchase of a residential property so that the real estate boom will continue.

# Summary report. KI - Kreth real estate - Medien 2017 

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# Hamburg, no other federal state builds so many funded housing projects.

# Hamburg funded housing projects

In 2016, around 2,000 social housing was subsidized.

In 2017, the number for social construction promotion in Hamburg is even to be increased to 3,000. Since 2011, 15,000 apartments have been subsidized in Hamburg so far, and the number is increasing. Social housing in socially deprived neighborhoods starts with a first occupancy of 6.30.- € uro per m², middle income / these districts start at 8.40.- € uro per m² rent. The projects are mostly funded by private investors and development banks. Housing companies are at 41%. Cooperatives at 24% and private investors at 25% holdings. Housing support is to be increased from January 2017 to 2030 by 3,930 per year. By January 2017, Hamburg had reached 83,121 so far, with an investment volume of 139 million planned for 2017/2018, rising to 155 million in the following year.

# Normal housing in Hamburg. In 2016, around 12,000 new apartments were approved, and never before have so many building permits been issued in Hamburg in one year. Mainly these were approved in Wandsbek (3,015), Hamburg north (1,947) Elbe and on the Alster (1,705) and in the HafenCity. Since 2011, around 58,858 WE have been approved. In Hamburg, in May 2016, it was decided to increase the housing construction from 6,000 building permits to around 10,000 building permits per year, with 3,000 building permits for social support construction to come into being.

# Summary report. KI - Kreth real estate - Medien 2017

Real Estate News from KI - Kreth Real Estate