MUNICH: Transactions in Germany’s giant yet troubled property market rose slightly in the first nine months of the year, data from JLL showed on Monday, as the global property firm cautioned that a rebound in Europe’s largest economy will be slow.
Turnover of investment properties from January through September stood at 23.4 billion euros ($25.66 billion), a 5% increase from the previous year, a sign of bottoming out after a two-year implosion in the market as the nation went through its worst real-estate crisis in decades.
Helping to stabilise the situation are central bank rate cuts in both Europe and the United States, JLL said.
“However, this will not lead to a sudden firework display of sales, and from a neutral perspective, we can only hope for a moderate upturn without exaggerations and unrealistic fantasies,” said Helge Scheunemann, head of research at JLL in Germany.
For years, property in Europe and particularly Germany boomed as interest rates fell, spurring demand. But a sudden jump in interest rates and building costs tipped some developers into insolvency as bank financing dried up and deals froze.
Germany has so far been Europe’s hardest hit in a real estate-related rout that has also struck China and the United States.
Source Homevior.in
