Majorca Property News

How high are the returns on Top Real Estate

Analysts say a turnaround in Europe's real estate markets. When the investment climate index from Union Investment show about the first time since 2006, the arrows at the two main European property markets upwards again. We give an overview of the returns.
The two large real estate operators and Dekabank Union Investment Real Estate (UIR) has seen the end of the downturn in European real estate markets close. After its recent trials begin, the mood of investors aufzuhellen. When the investment climate index from Union Investment first show since the year 2006, the arrows at the two main European property markets upwards again. The strongest increase in the UK with a gain of twelve points to 65.6. In France, the index since the summer of 2008 by 1.8 to 63.4 meters. In Germany, however, the assessment fell slightly to 62.1 points.
  "The sharp rise in the UK suggests that after the severe correction in the United Kingdom, the paralysis among the British investors will begin to dissolve," explains Olaf Janssen, Head of Real Estate Research at Volksbanken fund Union Investment providers.

In Britain, prices of commercial properties through the financial and economic crisis since the summer of 2007, still up to 40 percent and significantly stronger than in most other European markets have fallen. The UIR's investment climate index is based on a survey of managers from a total of 177 real estate companies and investors on future market developments and to assess the context and site conditions as well as to market structure.
Strikingly, the national differences: 68 percent of the British players have indicated in their investment decisions particularly attractive from a yield to steer. By contrast, German and French are looking for investors, primarily for safety. Only 29 percent of German and 28 percent of the French market participants, the return to the fore.
The survey results from the investment climate index largely confirm the view of Deka chief economist Ulrich Kater in the most recent real estate market monitor of the savings fund provider. Thereafter, investors in London this year in total income from rents and performance still a loss of 24 percent acceptable. 2010, the total yield only minus 0.6 percent and 2011 to 12.9 percent, 2012 increased by 24.2 percent rise. In Germany, the total yield this year is minus 15.9 percent. Next year, expect a negative hangover from only 2.5 percent. Forecast for 2011 of the Chief Economist, up from 6.1 and for 2012, an increase of 10.3 percent.
Deka and UIR are amongst the largest suppliers of open real estate funds in Germany. Together they manage in their mutual fund assets of around 30.6 billion euros. Unlike many competitors, both companies were not forced, while the capital market crisis in the fund last October because of high cash outflows indicted.
Confidence is also the main thrust of the current market analysis of the major bank Credit Suisse. "In Western Europe we see the first signs of a stabilization of the initial returns," says the new monthly report. "The Mietmärkte likely due to the sluggish demand for office space but remain under pressure." The office rents in Germany would be "fairly good", since "the robust demand and the supply-side risk is quite limited." The German real estate markets are likely, according to the Credit Suisse in the current downturn continue to be better than their counterparts in the rest of Europe.