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Empirica Price Bubble Index: 84 German Counties Subject to High Housing Bubble Risk
According to a report in the 11 June issue of the IMMOBILIEN ZEITUNG, condominium prices have lately outpaced rents in 168 of 402 counties and corporate cities in Germany. The article said that Empirica’s latest price bubble index addresses the question in how many cities there is an actual risk of a bursting housing price bubble. The survey score of 168 clearly exceeds the figures for 2014 (135) and 2012 (88). Then again, 375 out of 402 show no sign of oversupply yet. Still, the bubble index identified a high bubble risk in 84 counties (up from 51 in 2014 and 17 in 2012). Among these are the corporate cities of Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, and Stuttgart. The risk of a bubble was said to be much lower in Berlin. Germany as a whole presents a stable situation, according to the Empirica stats. The comprehensive index for the bubble risk in Q1 2015 rose by a mere 0.03% and continues to clearly undercut the reference value of 2014.
Trendy Districts I: Berlin and Düsseldorf
Within the framework of the annual series on the most dynamic housing markets in Germany that is published by the HANDELSBLATT together with the vdp Research institute, the HANDELSBLATT discussed the cities of Berlin and Düsseldorf on 12 June. The vdp Research findings suggest that the rent average in the German capital rose by 6.8% to 8.40 euros/sqm year on year. The mean price for a condominium was said to have gained by well over 7%, rising to nearly 3,400 euros/sqm. “There are big investment opportunities in Berlin,” Einar Skjerven of Skjerven Group was quoted to have said on the subject. Yet he added that they are not quite as big as they used to be. Skjerven was quoted with the argument that rents and prices simply cannot keep on growing at the same percentage rate as in previous years. He added that housing construction has also become a major topic in Berlin. The city’s largest housing development area is located in Adlershof, where 2,000 rental flats and condominiums along with student apartments are currently under construction. “Adlershof is a hidden trendy district, if you will,” said Michael Held of Terragon according to the paper. In his opinion, Adlershof will get much more important going forward, once the new airport in Schönefeld opens. Another player focused on the urban periphery of Berlin is Streletzki Group, according to Carsten Leckebusch, with a new project in Karlshorst now in preparation. While subject to many constraints, the market in Berlin remains attractive. “Our international clients consider Berlin the most dynamic of the European capitals,” as Thomas Zabel of Zabel Immobilien reportedly said. Demand for apartments beyond the mark of 10,000 euros/sqm is generated primarily by high-net-worth individuals from abroad, according to Zabel. The stats released by vdp Research identify Wilmersdorf, Friedenau, Schmargendorf and Halensee as trendy districts in Berlin.
In Düsseldorf, the revitalisation of brownfield sites and major construction projects were said to have invested the residential property market with fresh momentum. One of the most ambitious development schemes in the city, “Andreasquartier,” is being masterminded by Benno Maubach of Frankonia. Trendy districts in Düsseldorf include the downtown neighbourhoods of Altstadt and Stadtmitte, as well as Pempelfort and Karlstadt.
Overall, the survey looked at and analysed 15 different cities. The cities selected included, in addition to the major metropolises, midsize cities and smaller campus towns. According to the definition chosen by the vdp analysts, district locations qualify as trendy district whenever the purchase prices for single-family detached homes and condominiums as well as the residential rents outperformed the citywide average between 2011 and 2014.
New Trend: Vertical Villages
On 11 June, the HANDELSBLATT discussed a new development on Germany’s real estate market. There is an increasing number of high-rises that combine living and working in a single scheme. So-called vertical villages provide crèches, restaurants, retail units, workplaces, and private residences all in the same building. The paper described this type of building project as highly profitable because the housing demand in German cities keeps going up. The profit outlook for such properties is further enhanced by the fact that show a more stable performance than purely residential or commercial properties. After all, the residential rents may cushion a possible loss of commercial lease payments, and vice versa. The first vertical village in Germany is scheduled to open in Berlin in 2018. It is reportedly being developed by CG Group. “We have more to offer than just a building. We offer a life concept,” commented Christoph Gröner of CG Group as quoted by the paper. The plan is to raise vertical villages in twelve different German metropolises by 2020.
Diverging Readings of Frankfurt’s Housing Market Report
According to the IMMOBILIEN ZEITUNG of 11 June, the latest housing market report for the city of Frankfurt leaves ample room for interpretation. Sieghard Pawlik, spokesman for housing policy of the Social Democrats in the city council, rates the housing situation in Frankfurt as nothing less than dramatic. He was quoted with the observation that the city was now almost 25,000 flats short of demand in 2013, up from a shortage of roughly 20,000 in 2012. The city’s housing authority is watching the number of condominium conversions with some alarm, after the annual total surged from 2,500 to 3,887 within a year. By contrast, Olaf Cunitz (Greens), Head of the Planning Departments, was quoted with a rather favourable assessment. The city’s development program for residential building land now includes around 30,000 apartments, or so he said. He was also quoted with the observation that social segregation in Frankfurt is eroding.
Trendy Districts II: Munich, Cologne, Potsdam, and Münster
On 15 and 19 June, both the HANDELSBLATT and HANDELSBLATT ONLINE covered Germany’s most dynamic residential areas within the framework of a series on trendy districts (“Trendviertel 2015″), discussing the property markets in Munich, Cologne, Potsdam and Münster, among other cities. The articles noted that property prices in the Bavarian state capital have exceeded the national average for years now. Condominiums prices, according to vdp Research, appear to have increased by 7% to 5,980 euros/sqm lately. An assessment of the situation in Munich by Dr. Lübke & Kelber suggests that investors should not be discouraged by the wide gap between purchase price and rent nor by the fact that net initial yields often range between 2.5% and 4% maximum as long as they have access to affordable financing. Among the trendiest districts in Munich in 2015 are said to be Graggenauviertel, Schönfeldvorstadt and Englischer Garten.
In Cologne, established locations in the inner city as well as sought parts of the southern and western districts are ranked as the highest priced areas. This is reportedly explained, inter alia, by the fact that a large percentage of the construction projects currently on the market, which add up to around 2,200 condominiums, are found in downtown areas on the left bank of the Rhine. According to the State Office for Statistics, 3,600 apartments were completed in Cologne in 2014, which is 600 more than the year before.
In Potsdam, housing is becoming a scarce commodity, not least because the close proximity to Berlin is driving up prices. Clients from Munich and Hamburg appreciate Potsdam as destination, according to Andreas Cornelißen of Deutsche Apotheker- und Ärztebank, which is the bank marketing the Brockessches Palais complex of buildings in downtown Potsdam. Another aspect to be taken into account according to the article are investors who play a major role on the rental market but are motivated by other reasons than returns.
In Münster, rent rates in the examined districts rose by 4.2% to an average of 9.70 euros/sqm. Condominium prices had climbed by an average of 4.6% last year, with buyers paying approximately 2,710 euros/sqm. Martini-Viertel takes the lead with an average price of 3,120 euros/sqm, which is to some extent explained by Frankonia’s luxury housing estate Klostergärten. As Manfred Binsfeld of Feri told the paper, Münster is an attractive campus town with high-end amenities, which attracts many young people and is reflected in a positive migration balance. The construction rate is too low to cover demand. “At the moment, Münster shows a significant demand back-log – especially for small flats or apartments,” as Till Schmiedeknecht of BGP was quoted. Due to the cost hikes, truly affordable accommodation is barely available any more, except in period buildings. Faced with high prices in the inner city, investors are settling for Münster’s periphery. Frank Wojtalewicz of d.i.i., a company operating residential units in the Roxel district of Münster, reportedly said: “We believe that for the time being, Münster will remain one of the most attractive residential property markets in Germany.”
Housing Construction Volume Increased by 14% in 2014
Figures released by the Federal Statistical Office (Destatis) show that housing construction gathered considerable momentum in 2014. As the FRANKFURTER ALLGEMEINE ZEITUNG reported on 19 June, roughly 245,000 flats were completed, a one-year increase by 14.2%. Multi-family residential buildings experienced the steepest increase, growing by 28% to a total of 101,000 units. This, however, falls short of the mark, according to Barbara Hendricks, Federal Minister Building (Social Democrats). She added that around 270,000 flats would have to be completed annually until 2020 to meet the growing demand.
Deutsche Annington Acquires the Südewo Housing Portfolio
The BÖRSEN ZEITUNG, DIE WELT and the FRANKFURTER ALLGEMEINE ZEITUNG reported on 16 June, as did the IMMOBILIEN ZEITUNG on 18 June, that Deutsche Annington will acquire up to 94.9% of the housing stock of Süddeutsche Wohnen (Südewo). The price to be paid for the 19,800 flats was quoted as 1.9 billion euros. The Südewo portfolio is sold by Patrizia, which acquired it in 2012 together with a syndicate including insurance companies, pension funds and superannuation schemes for 1.44 billion euros from the state bank LBBW. The acquisition is expected to be completed by early July. The purchase of the flats, the bulk of which is located in the state of Baden-Württemberg, will bring the portfolio of Deutsche Annington up to a total of 370,000 flats. During its three years of ownership, Patrizia reportedly invested the amount of approximately 89 million euros in the modernisation of the Südewo portfolio. Collectively, the flats generate an annual cash flow of 105 million euros. The average rent appears to be 6.68 euros/sqm, compared to just 5.53 euros/sqm in the current Annington portfolio. Notwithstanding the disposition, the value of Patrizia’s real estate inventory is expected to keep growing. The company was quoted with the comment that “the drain of 1.6 billion euros associated with the sale is compensated by already transacted or pending acquisitions.” In fact, Patrizia was further quoted with the expectation to increase its assets under management by two billion euros before the end of 2015. “Principles and Recent Developments in German Property Transaction Law”: This will be the subject of a special event hosted by the BERLINER IMMOBILIENRUNDE panel on 30 September and 01 October. Request your copy of the program by e-mailing us at: info@immobilienrunde.de.
Jürgen Michael Schick the Next President of the IVD Real Estate Association
As DIE WELT reported on 17 June, Jürgen Michael Schick was elected as the next president of the IVD Federal Investment and Asset Management Association. At the association’s annual general meeting in Berlin, a clear majority voted in favour of the sitting vice president. Schick thus succeeds Jens-Ulrich Kießling who held the post since 2007.
Berlin: New Constraints for Large-Scale Construction Projects
In Berlin, future large-scale construction projects have to earmark one in four flats for rent control, tenant selection requirements, and rents of 6.50 euros/sqm or less. This is the upshot of a resolution passed by the Senate of Berlin in the context of the Berlin model of cooperative land development as reported by the SÜDDEUTSCHE ZEITUNG (19 June) and the FRANKFURTER ALLGEMEINE ZEITUNG (17 and 19 June). The articles went on to say that investors will also have to pitch in with the costs of creating green areas, crèches and elementary schools. Reportedly, the new regulations will apply only to projects that require a local development plan, and not to small-scale projects. In return, investors will be eligible for subsidies from the State of Berlin.
Hamburg to Introduce Rent Freeze
As the IMMOBILIEN ZEITUNG (18 June) and the SÜDDEUTSCHE ZEITUNG (19 June) reported, Hamburg will introduced the recently enacted rent control scheme commonly referred to as “rent freeze” for the entire city limits as of 01 July. On the same date, a survey will be launched to determine whether or not the entire housing market of Hamburg is strained. If this turns out not to be the case, the rent freeze will be lifted in sub-areas where no housing shortage was diagnosed, or so the Senate of Hamburg and the city’s housing industry agreed. However, it would have been more sensible to compile the housing market surveys first before introducing the rent freeze on the strained sub-markets, as Alex Wittlinger of the Northern Germany chapter of the IVD Federal Investment and Asset Management Association was quoted to have said.
Brandenburg to Raise Real Estate Transfer Tax to 6.5%
On 18 June, the IMMOBILIEN ZEITUNG carried an item saying that the State of Brandenburg will raise its real estate transfer tax from 5% to 6.5% as of 01 July. By doing so, the state follows the lead of Saarland and North Rhine-Westphalia, which raised their real estate transfer tax rates to 6.5% at the beginning of the year. Brandenburg’s Minister of Finance Christian Görke (The Left) expects the tax hike to flush an extra 50 million euros annually into the state’s coffers.
TMT Sector Rentals Make Inroads on Berlin’s Office Space Supply
Young companies from the technology, media and telecommunications sector (TMT) were the driving force behind a record take-up on Berlin’s office market in early 2015, as the SÜDDEUTSCHE ZEITUNG wrote on 19 June. BNPP RE was quoted with an estimate that puts the transaction total for commercial real estate for the year’s opening quarter at 1.3 billion euros, ahead of Munich and Frankfurt (with a take-up of approximately 1.1 billion euros each). According to Nicolás Mercker-Sagué of CBRE, the TMT industry accounted for 40% of the total take-up in Berlin. Martin Czaja of BEOS noted that the supply in available accommodation is dwindling. CBRE suggests that demand is highest in the boroughs of Mitte and Friedrichshain-Kreuzberg as well as in the district of Prenzlauer Berg in the Borough of Pankow. Here, it is not unusual for rents to go as high as 20.00 euros/sqm.
Hamburg Lacks Modern Logistics Space
The IMMOBILIEN ZEITUNG wrote on 18 June that Hamburg has a total transport and warehouse area of 8.37 million sqm. This is the finding of an analysis that BNPP RE undertook and that also included the logistics locations of Berlin and Frankfurt. Hamburg’s largest sub-market is the port, which is zoned as a special area and which accounts for 23.9% of the city’s total transport and warehousing space. The logistics property stock as a whole is dominated by assets of standard amenities and medium quality (59.9%). The next largest contingent is made up by modern accommodation (28%), ahead of simple and unrefurbished warehouses. At 5.3%, the void rate in Hamburg is higher than that in Berlin (3.6%) and Frankfurt (2.7%). BNP Paribas Real Estate explains this by citing the fact that Hamburg has a higher share of dated or simple warehouses that are hard to let because of the risen requirements of today’s occupiers.
Recommended Reading – by Dr. Rainer Zitelmann
The Snowball. Warren Buffett and the Business of Life
Alice Schroeder. The Snowball. Warren Buffett and the Business of Life. Bantam Books, 2008, 959 pages
This is certainly not the first Warren Buffett biography I have read – yet without doubt it is both the most voluminous and best one. It contains more information on the life of the most successful investor of all times because Buffett himself provided the author – unlike other biographers – with a wealth of information in the course of numerous personal interviews. For the first time, a biography affords a detailed angle not just on Buffett’s investment philosophy, but also on his private life and his personality structure.
Buffett grew up the son of a decidedly conservative Republican politician who considered it to be of key importance to communicate to his children that they were to orient themselves to their own inner system of values and not so much to the general opinions of society. “The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard. I always pose it this way: I say: ‘Lookit. Would you rather be the world’s greatest lover, but have everyone think you’re the world’s worst lover? Or would you rather be the world’s worst lover but have everyone think you’re the world’s greatest lover?’” (p. 33).
This “inner system of coordinates” helped Buffett to maintain a unique autonomy from investment fads. His autonomy kept getting challenged – particularly in the late 1990s. Buffett, whose investments funds had clearly beat the general stock index for many years and decades, was deemed “old school” during that time. What the media and the investor community saw in him was an old man who failed to grasp the new times that were paced by the Internet and the New Economy. During the time of the Internet bubble, Buffet’s funds were outperformed by many other funds that committed themselves to New Economy units. But he remained true to his maxim not to invest in things that he did not understand. Although he was close friends with Bill Gates even then he admitted to know nothing about the Internet and new technology – and hence refrained from investing in this sort of stock.
For many years, he actually refused to get a computer because he felt his head was quite sufficient for doing his math. Even the offer made by Bill Gates to send him Microsoft’s best-looking employee to explain the features of a PC to him could not sway his mind. When he ended up buying a PC after all, it was exclusively because it permitted him to play his favourite game, Bridge, via the Internet. Initially, he insisted that no other function be installed on his PC.
So what is the secret of Buffett’s success? Over dinner among a circle of the successful, Bill Gates Sr., the father of Bill Gates, asked him: “What factor did people feel was the most important in getting to where they’d gotten in life?” And I said ‘Focus.’ And Bill said the same thing” (p. 623). His almost exclusive fixation over decades on a single goal, namely to invest successfully, is certainly one of Buffett’s secrets. In an aside highlighting the point, his wife once suggested that he needed only a light bulb and a book in his hand to be happy.
While financial success became the defining goal in Buffett’s life early on, it was in no way fuelled by the desire to lead a luxury life and to acquire expensive material goods. Quite on the contrary: It is well known that Buffett has lived for decades in the same modest building, prefers hamburgers over gourmet restaurants and Coca Cola to champagne. So what is the driving power behind a person like Buffett? At heart, it is probably the wish to demonstrate his superior intelligence. And sure enough, his financial success was nothing if not a proof of his savvy mind. Most likely, Buffett could have excelled just as easily by becoming a chess champion or scientist.
Hence, he was particularly put off by the fact that proponents of the efficient-market hypothesis (EMH) kept trying to prove that it is theoretically impossible to permanently outperform the stock market, or at best the result of chance – in analogy to the fact that there are people who have won lottery jackpots more than once. This hypothesis must have hurt Buffett to the core, as it called everything he lived and worked for into question (compare pp. 527+). The book therefore takes the time to discuss in detail how he critically addressed the assumptions underlying the hypothesis.
The biography makes clear that Buffett attached more importance to integrity and honesty in business life than to anything else. Particularly important to him was the compliance not just with legal but with ethical standards, too. Here you will find a relation to his defining motive of his life, namely to use his investment
achievements to prove his superior intelligence. If his achievements had been the result of trickery and illicit practices, they would not have been worth anything in his eyes. Impeccable behaviour meant more to him than abidance by statutory parameters. Buffett propagated a strict “front-page test” that went like this: “I want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper, to be read by their spouses, children, and friends, with the reporting done by an informed and critical reporter” (p. 604).
When he – rather involuntarily – was pressed into the role of Salomon’s CEO following a major scandal, he briefed his staff as follows: “Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless” (p. 603).
Seen with the benefit of hindsight, the story of Buffett’s investments is one of lasting success. But in truth, Buffett is a master of constant crisis management. By no means were his investments always crowned with success. It was sometimes not until after he had made a given investment that he discovered the specific problems and challenges it involved. Yet he would accept the challenges, focus his entire attention on the problem at hand – and solve it in surprising ways. In addition to his bright mind, the inner autonomy of his judgement, and his exclusive focus on a single goal, this capacity to resolve issues is probably one of the secrets of Buffett’s extraordinary investment track-record. The many attempts to copy him probably failed simply because it was not a special “investment recipe” that made him successful, but rather the combination of his character traits.
For more reviews of interesting business books, see Zitelmanns Book Reviews
GERMAN REAL ESTATE NEWS
Only the contributions titled “Commentary – by Dr. Rainer Zitelmann” reflect the editor’s opinion. Responsible: Dr. Rainer Zitelmann. The facts represented in press items are not checked for accuracy. Copyright for GERMAN REAL ESTATE NEWS: Dr.ZitelmannPB.GmbH, Rankestr.17, 10789 Berlin, Germany. Copying or electronic forwarding of the newsletter, except by contractual agreement with Dr.ZitelmannPB.GmbH, constitutes a violation of applicable copyright laws.
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Feri Real Estate Market Rating
The Feri Real Estate Market Rating provides a forward-looking assessment of potentials and risks for investment return on regional real estate markets. Ratings are based on detailed econometric forecasts of regional real estate markets including regional economic development. The rating currently includes more than 150 cities in Europe, in the United States and in Asia.
In this issue:
Real Estate Market Rating for Vienna
Vienna is Austria’s capital and, along with New York and Geneva, seat of several UN institutions. Vienna’s Central European location – close to Eastern and Central Europe’s emerging, fast-integrating economies – has prompted various international firms to coordinate their Eastern European business activities from Vienna. Vienna’s stock exchange makes the city Austria’s most important financial center. A favorable geographic position and excellent transport links serve as an important asset for Vienna’s regional development. Upcoming infrastructure improvements, including an expansion of the airport, will make Vienna an even more attractive and competitive location. Furthermore, Vienna is an internationally known science and research center.
Feri rates Vienna as a business location “A”, which is unchanged compared to the 1st quarter 2014. It translates into “high potential, low risk”. With this rating result the city ranks 10th in the comparison of European Metropolises.
Office Real Estate
Regarding office real estate Feri rates Vienna “C”, which is downgraded to the 1st quarter 2014. The city ranks 14th among office locations of European Metropolises. Feri awards the office top locations “C” and the side locations “C”
Vienna’s office market is of average size in comparison to European regions. Its particular feature is stability. Only few markets show such low volatility of rental prices and rental yields. This could be also observed since the crisis in 2007, which had only minor impact on the market. Vienna’s function as capital and its favorable location for the entrance to the Eastern European market, both stabilize demand. Compared to other European metropolitan centers however, Vienna is a relatively cheap location. Overall, its office real estate market is less risky than other European office markets.
Development of rents in the coming years will be slightly above the growth trend of 1.7% per year. Building activity slowed down in the years 2013/2014 and was below its long term level of 200.000 m². Indeed 2015 construction level will match with the long term average. Office employment is back on a moderte growth path, after a slight downturn in 2009. Vienna’s rental market is not known for excessive growth. It is expected that the structural growth will approximately match inflation.
Rental yields have been on a downward pressure since 2009. This is due to Investor´s sentiment considering Vienna being one of Europe´s “Safe havens”. In combination with an increase of rents, purchase prices are rising. In the past the performance was almost exclusively determined by the development of rents. During the financial crisis, the price development was dominated by the increase of rental yields, although the exaggerations were not as predictable as in other European metropolitan centers. Rental yields are expected to rise slightly, due to increasing interest rates over the long term. As a result, price development will be damped.
Before the crisis hit the market, a similar contraction of rental yields as in other European metropolitan areas was only marginally observable. In coming years it is likely, that the stability on Vienna’s office market will attract investors looking for more reliability. Taken potentials and risks into account we expect fair rental yields of 5.4% in the years to come. Thus the market is currently above fair value.
Retail Real Estate
In the comparison of European Metropolises regarding retail real estate Vienna placed 19th with a rating result of “B+”, which is unchanged compared to the 1st quarter 2014. Feri awards the retail top locations “B” and the side locations “A”.
Before the financial crisis, the rent performance of Vienna’s market for retail space was rather good in both prime and secondary locations. In prime locations – such as “Mariahilfer Strasse”, “Kohlmarkt”, and “Kärtner Strasse” -supply of retail space is scarce and definitely exceeded by demand. During the crisis, rents remained comparatively stable in comparison to other European metropolises. Thus, only modest rent decreases were recorded. Over the long term, a trend of moderately rising retail rents in both prime and secondary locations is expected.
Residential Real Estate
When it comes to residential real estate, Vienna placed 16th among European Metropolises with a rating result of “B”, unchanged compared to the 1st quarter 2014.
Strong building activity in the rental housing market during the 1990s produced an excess supply of apartments in Vienna. But for a number of years now, the pace of new residential construction has been falling continuously. Posing a fundamental problem for Vienna’s rental housing market, residential property purchase prices in the region are quite high, while rents for apartments tend to be comparatively low, except in a few districts of the city (districts 13, 18, and 19). Low rents in the other districts are caused by legal regulation. Thus, Viennese households include an exceptionally high proportion – one of the highest in the world – of those who own their dwellings. Given Vienna’s low new building activity, increasing rents for both new and existing apartments are projected for the upcoming years.
Building activity of the 1990s has put purchase prices under a lot of pressure in the past. This development however, remains a thing of the past as housing market prices developed strongly in recent years, even during the financial crisis. The biggest increase was registered in the inner belt of the city. Vienna’s slow pace of new building activity, in conjunction with a relatively optimistic projection for overall demand growth for the upcoming years, should support a trend of rising prices in all segments – detached single-family houses, town houses, and condominiums.
Contact:
Franz Wolfgang Kubatzki, wolfgang.kubatzki@feri.de, phone +49 (0) 6172 916-38 11
Feri Real Estate Market Rating
The “Feri Real Estate Market Ratings” issued by Feri appraise the value potential of regional real estate markets, taking into account the attendant risks. The methodological approach underlying Feri Real Estate Market Ratings is rooted in the empirical observation that the performance of a given real estate market depends essentially on the economic power of the respective city. Before this background, Feri develops a separate prognostic model for each city, mapping the regional economy as a system of independent equations.
For the purpose of compiling its ratings, Feri uses a detailed regional forecast to analyse the socio-economic development, the economic structure, as well as the ten-year indicators specific to the respective real estate market. The forecast findings are evaluated using a mathematical rating algorithm.
The objective behind the ratings is to make the markets more transparent, and thereby to support pending investment decisions of private and institutional investors. Feri ratings are updated on a quarterly basis, and are currently available for 67 German cities and counties, as well as for 60 European cities outside Germany, and 45 cities in the United States.
Feri EuroRating Services AG
Feri EuroRating Services AG is a leading European rating agency, specializing in the analysis and valuation of investment markets and investment products. Feri is also a major economic research and forecasting institute. At present, Feri employs a staff of around 60 professionals to manage about 1000 customer accounts. The company is headquartered in Bad Homburg near Frankfurt, Germany, with sales offices in the United Kingdom, France, and the United States. In addition to its global industry analyses and ratings of companies, countries, capital and real estate markets, Feri regularly appraises the investment funds registered in each country. Annual market surveys on institutional and mutual funds as well as on closed-end participations provide an overview of the perspectives and actions of institutional investors. In the real estate sector, Feri conducts global real estate research, performs real estate valuations, and provides ratings of companies, REITs, real estate, real estate portfolios, and indirect real estate investments (open-end and closed-end real estate funds).
For more information on Feri EuroRating Services, please go to http://fer.feri.de/en/about-us/portrait/.
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