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Investment news germany

Investment News Germany September 2016

Investment News Germany September 2016

One huge German market is about to be hit by a perfect storm of zero-interest rates and low inflation

While low inflation can pose a problem for many sectors, it is helping to reinvigorate Germany’s housing market, Sean Darby and his team at Jefferies said in a note to clients on Wednesday (emphasis added):

A combination of firm wage growth, negative bund yields, dormant inflation and a booming current account surplus is allowing the German real estate market to reflate. In comparison to Western markets, the German property market starts from a much lower base and also relatively favourable price comparison. We are bullish on the real estate sector as well as the DAX.”  To read more click HERE

GERMANY REMAINS THE DRIVER OF EUROZONE GROWTH

Germany, the Eurozone’s largest economy, grew 0.4 per cent, compared with an impressive 0.7 per cent growth rate during the first three months of the year, albeit that was a better result than expected. Growth was supported by net trade as well as private and government consumption, according to Destatis, the German statistics office. The second-quarter expansion took year-on-year growth to 1.8 per cent on a seasonally adjusted basis. The unemployment rate stands at 4.2 per cent, the lowest level since reunification in 1990 and one of the lowest rates in the European Union. The labour market has now little slack and is set to tighten even further as the baby-boom generation retires.

Strong Domestic Growth Keeps Germany’s Economic Outlook Upbeat

There have been some notable external risks mentioned in the economy because the British vote to leave the EU may still have some ripple effects. Some uncertainties exist because there may be some downsides that may not be experienced immediately but will only be realized when it is too late. The German finance ministry mentioned that there have has been slower economic growth than had been expected in the three months ended in June. To read more click HERE

Further Investment News Germany. Dolphin Trust Project Update: Windorferstraße, Leipzig
As Dolphin Trust goes from strength to strength as an investment, we can provide details on one of the projects our clients have invested in. The city of Leipzig is also known by the Leipziger Messe, which is one of the oldest trade fair venues in the world and its tradition dates back to the year 1165. The most famous one is the annual “Leipzig Book Fair”. With a settlement of international renowned companies such as Porsche AG and the BMW Group, Leipzig is an attractive business location as well. The existing infrastructure with efficient transport routes such as the airport in Leipzig / Halle, modern offices, commercial and residential buildings suggests that Leipzig as a great city for economic growth.

The building is located in Kleinzschocher area and was built in the second half of the 19th century. It was the residential and commercial building of cigar manufacturer Gustav Boehme and was one of the first new buildings in the street. Dolphin Capital redeveloped the listed building from 2015-2016. Extensive work at the façade as well as at the historical stairwell were made to complement the modern furnishings of the refurbished apartments.  See this project in more detail HERE

The Dolphin Trust investment opportunity can be found here http://www.barringtonhowe.com/product/dolphin-trust-gmbh/

 

 

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Investment News Dolphin Trust

Investment News
Germany and German real estate in particular is seeing a sustained growth. Dolphin Trust, one of our investment opportunities is reaping the rewards.

German Private Sector Growth Accelerates
Further investment news shows that growth in Germany’s private sector accelerated in May to hit the highest level so far this year, a survey showed today. This suggests that Europe’s largest economy will extend its surprisingly strong start to the year into the second quarter.  Click Here to Read the full story

European Real Estate Continues to Attract Investors
Investor appetite continues to grow in most European commercial markets, with Germany leading the way for the 2nd quarter in a row.  For further details CLICK HERE

German Economy Fared Well in Q1 as Trade Surplus Grows
The trade surplus is a key gauge of an economy’s comparative strength and in recent months has highlighted the robustness of Europe’s biggest economy amid the current global economic uncertainties.  For further details CLICK HERE

Dolphin Trust updates
This is the latest update on some of the current developments benefiting our Dolphin Trust clients.

The Old Cigar Factory, Fabrikweg 12, Horb
The old Cigar Factory in Horb now has a new face! In the words of the project co-ordinator, Jochen Krause of Deutsche Planbau GmbH, thanks to the fast progress of the teams at the Dolphin Trust construction site, the Cigar Factory has now had a facelift.
During refurbishment, Dolphin Trust will create nine new apartments in the old Cigar Factory and will bring new life to the government listed building, built in 1898. Despite its historic age, modern standards of energy efficiency will be achieved and high value materials will be used for all apartments for modern living comforts.

In the last few days the loggia, which is visible from the street, has been finished. The old roof section above the stairway has also been completely renewed and the attic has new flooring.  In just a few more days the ceilings of all floors will be completed.
For full details on this investment opportunity please CLICK HERE

Dolphin Capital GMBH

German Real Estate increases with Euro rate drop

Investor and resident demand continues to increase in the Berlin housing market as reported by the CBRA Berlin Housing Market Report. The main reasons for this are improved economic performance and purchasing power in addition to growth in both population and numbers of households. Investors’ extreme interest in residential property is based on prices, which are still moderate by international comparison, the positive opportunities for the city, low interest rates, and the shortage of alternative investments.

Due to the noticeable decrease of the euro exchange rate, Property in Germany has become even more appealing to investors from other currency areas such as the UK with sterling holding strong. Even with the Euro rate dropping, it’s had a positive impact on German real estate. Berlin is seeing the highest increase in investment at over €1.3 billion in Q1 2015 compared to €617 million in the same period last year. This is great news for our Dolphin Trust formerly Dolphin Capital investors as the Euro was seen by some investors as a big area of concern.

Participants in a recent Berlin Hyp survey established that Germany remains highly appealing for investment in 2015 and that investors have immense confidence in the country’s constant economic development. German real estate is still in demand as an investment opportunity with decent yield prospects and a high percentage (around 84%) of survey participants feel that the real estate market will continue to strengthen and take advantage from conflicts around the world. Furthermore, German consumers’ disposition to buy property improved even more in May. This was encouraged by an all-time low in unemployment and low interest rates.

Barrington Howe celebrates this month a third year anniversary of working with Dolphin Trust. The latest Dolphin Trust (Windorferstrasse 43, Leipzig )project started restoration works on this 19th century three-storey building in April 2015. The demolition work has been completed successfully and the walls and floors are now being put in place, with scaffolding erected around the building. All of the apartments will be appointed with bath tubs and a balcony or terrace.

Another Dolphin Trust project is Heeperstrasse 70, Leopoldshöhe. This building which was previously a furniture factory but Dolphin Trust has plans to refurbish parts which used to serve as store areas. The remaining areas will most likely be demolished and replaced with new buildings. Heeperstrasse is located in a popular university town in Detmold. The increase in demand for housing in Detmold has caused the new build sector to see a rise of more than 9.5% annually for the last four years.