The positive development shown by the German property market in the previous month could not be sustained in August. A current survey among approximately 1,000 property experts documented a downward trend. The Deutsche Hypo Property Climate fell by 6.0 per cent to 81.4 points in August. This represents an undershoot of the previous year's value by 11.7 per cent.
Both the earnings climate and the investment climate showed a decrease in the reporting month. The earnings climate recorded a decline of 4.4 per cent to 87.1 points. An even more significant reduction was observed in the investment climate, which dropped by 7.4 per cent to 75.9 points. Both sub-indicators thus remain in the range of scepticism, below the 100-point mark defined as neutral.
Compared to the previous year, this development is also evident: the investment climate is 14.2 per cent and the earnings climate is 9.3 per cent below the corresponding values of the same month last year.
Differentiated View of the Segments
In August, all sub-segments experienced declines compared to the previous month. The retail climate showed the steepest loss, with a decrease of 15.7 per cent to 65.2 points. This indicates the continuation of a long-term strained situation in this sector. The logistics climate reduced by 6.9 per cent to 95.7 points, while the office climate recorded a decline of 3.1 per cent to 66.1 points. The hotel climate also fell, with a decrease of 2.9 per cent to 95.6 points.
An exception was the residential climate, which continued to prove robust. With a comparatively small decrease of 1.0 per cent, it reached 130.4 points. This stability in the residential segment contrasts with developments in the other sectors and suggests sustained demand in this area, although a slight cooling is becoming visible here too.
Key Figures at a Glance
- —The property climate fell to 81.4 points.
- —The retail climate recorded a loss of 15.7 per cent.
- —The residential climate remained stable with a decrease of 1.0 per cent.
- —The investment climate reached a level of 75.9 points.
