Research as a base for investment decisions

Europe is currently experiencing a turbulent economic environment. Traditionally, there is a high correlation between macroeconomic developments and the respective real estate markets. At present, falling housing permits, which are synonymous with growth and investment activity among private households, are becoming the focus of political, economic, and public attention: "too expensive," "too slow" and, above all, "too few”.

There is no question about it: "The" office remains an integral part of the modern working world, even after the Corona pandemic and the experience of "remote working". But the balance between the old working world and the new more flexible conditions, has not yet been found. Statements from corporates to traditional mid-sized companies do not create a clear picture. At the very least, it seems clear that the classic 100% presence - especially in service professions - will no longer exist.

In CREDI Q2 2023, the main index rose from the 2022 rock bottom back to the level seen one year ago.

A quiet first half on the transaction market. The transaction volume for the first half of the year 2023 was low and reached EUR 1.4 billion, which is the weakest H1 volume since 2013. During the first half of 2023, the most popular property type was residential portfolios, and industrial and logistics properties came second.

The CREDI Index decreased slightly compared to the previous CREDI edition and remains close to the all-time low

Munich, 6th September 2023

A simple question: "Is there actually an optimal time to invest in office properties?" Admittedly, this is a question that is directed more at professional investors. After all, they really ought to know, don't they?

There is no question that the European logistics markets are reorganizing. By this, we only superficially mean the yield adjustments for the respective properties. These have taken place because of the change in the interest rate landscape in 2022 to mid-2023 but have not yet been completed.

The CREDI Index deteriorates yet again to a level close to the all-time low

22 May 2023 - In the major European cities, a very high demand for residential space continues to be observed even in the general market turnaround phase. This demand effect, caused by continuing urbanisation processes, in combination with a limited supply of living space, means that residential rents continue to show upward trends.

28th April 2023 - Spain as an investment location - new Research Residential Report

The German commercial real estate markets are in a turbulent environment. The ECB's interest rate turnaround in July 2022 ended the low-interest phase in the eurozone. Last year, the key interest rate was raised by 250 basis points in four steps, with a further 100 basis points added so far this year. Due to continued high inflation rates, at least one further interest rate hike by the ECB by the middle of the year is a realistic scenario. The significant rise in interest rates and the ongoing macroeconomic tensions and uncertainties are leading to restraint on the side of numerous players on the German real estate market. A significant reduction in dynamics on the transaction market by probably the end of Q3 2023 is therefore very likely.

CREDI index recovers due to expectations of a stabilisation in the bank loan market

From a strong property market to uncertain times Year 2022 was a year of change that marked the end of a longterm strong property investment market. The change is due to the war in Ukraine, which rapidly increased inflation and eventually interest rates to a much higher level than had become the norm. Transaction market was really strong during the first half of the year, but an exceptionally radical turn took place in the summer, and the rest of the year was challenging in terms of property investments.

   Munich, 15th February 2023

Retail is the type of asset with the highest investment ratio and residential remains one of the most sought-after segments, according to the report "Real Estate Investment in Spain 2022" by Catella

   Munich, 1st February 2023

   Munich, 25th January 2023