I was at the annual Expo Real trade fair in Munich this week. The largest trade fair for real estate and investment in Europe is always an ideal forum for networking with industry experts and establishing valuable contacts. The construction and real estate industry faces challenges due to high interest rates, risen construction costs, and low new construction activity. Nevertheless, my discussion partners and I agreed that this mixed situation, in particular, holds a number of opportunities. The real estate sector is and remains one of the most stable asset classes, especially in Germany. However, when it comes to transactions, the value stability of the property must be increasingly scrutinized. This requires strong partners. Those who act strategically and analytically can benefit from future developments in the real estate market.
The mood at Expo Real this year was already more positive than last year. The low point has been reached. Many see light at the end of the tunnel. The turnaround in interest rates has already been heralded. The rise in construction costs is losing momentum, while land costs are stagnating or falling in some cases. Requirements for new buildings will fall. New subsidy programs are likely to be initiated, particularly for affordable housing. The low level of completion is pushing up rents. Incomes are rising. Buyers are in a good negotiating position. The timing for real estate investments is attractive.
Many thanks to all my discussion partners for the insightful exchange at the Munich trade fair and the subsequent evening events.







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