Vacancy rate dropped only marginally As the demand overhang declined, the vacancy rate dropped only marginally, from an already low 0.7% in 2010 – 2014 to 0.6% in 2015. These developments are unusual for a German metropolitan area. Hamburg plans to build more than 10,000 new residential units each year,Read More →
arm’s-length interest rate is that relevant to the currency of the loan The arm’s-length interest rate is that relevant to the currency of the loan. The currency chosen must be reasonably plausible in the circumstances, but the choice is not otherwise limited by any hard and fast rules. The corollaryRead More →
What are the reasons for Frankfurt’s housing shortage? The growth in population and employment described above has also meant a rise in the demand for housing. Demand was already fuelled by low interest rates, positive income developments and, at least at the beginning of the current cycle, relatively cheap pricesRead More →
Path planning & AI AI developed over the last few years. It is the final step, path planning, that has proved difficult. This is the ‘doing’ step (as opposed to the previous two ‘learning’ steps) and is also in some ways the most critical. If companies do not perfect thisRead More →
Banks need to innovate Why banks need to innovate Due to organisational constraints arising from size, available skills and resources in general, many banks will find themselves at a disadvantage when it comes to adopting and implementing new innovations and technologies in a timely manner. Hence, it is likely thatRead More →
Exit from the reform path Exit from the reform path would be the wrong signal for Europe A renewed Groko would certainly be no love affair – neither for the parties involved nor the German public. The Germans have disapproved of the wavering course in government formation, so far, andRead More →
German economic cycle remains intact – 2018 forecast with upside risks The German economy continued to expand at the start of the year. Even though recent PMI (Composite Feb: 57.6 vs. Jan: 59) and ifo (Climate Index Feb: 115.4 vs. Jan: 117.6) survey results for industry showed a decline forRead More →
Smart cities & AI The next area of artifcial intelligence that will likely receive a boost in 2018 is smart cities. Alphabet’s announcement last November of a partnership with the city of Toronto to develop a new waterfront precinct is a big step forward for the roll-out of devices ableRead More →
The dot.com boom At the turn of the millennium imagination running wild about growth resulting from the dot.com boom initially led to an extreme shortage in office space, which then triggered a huge overreaction in building activity. More than 1 million m2 came on to the market in a shortRead More →
Rents for re-let and newly let apartments were up 4.8% In 2017, rents for re-let and newly let apartments were up 4.8% (average for all metropolitan areas: 8.4%) and 3.7% (average: 5.3%), respectively. The same applies to the cycle as a whole from 2009 to 2017, with rents for re-letRead More →
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