The King Sturge Real Estate Economy Index has found another increase in almost every climatic indicator for November. Last month, the poll-based real estate climate rose by 2.0 percent, from 78.2 to 79.8 index points.
The growth driver this time was the rental climate. Unlike the earnings prospects, which continue to be eyed with skepticism in the face of the threat of insolvencies and rent losses, the investment climate approached the threshold mark of 100 points – reflecting a balanced sentiment ratio – climbing from 90 points in October to 91.4 in November.
“There is little reason to expect the economic crisis to end anytime soon,” commented Sascha Hettrich, managing partner of King Sturge Deutschland.
“With this in mind, the poll returns for the office climate assume a surprisingly positive significance. After all, the looming threat of job cuts made it reasonable to expect the gravest problems in this segment. For the time being, though, the office letting markets remain relatively stable.”