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New Special Depreciation Allowance for Housing Construction
By Hans-Joachim Beck, IVD Federal Association
The regulations contained in Section 7b of the German Income Tax Act (EStG) are probably still familiar to many readers. These were the rules that used to allow even owner-occupiers to take advantage of depreciation expense allowances. As the years passed, this form of support for German housing was replaced by the special expense deduction allowance (Sonderausgabenabzug), as regulated by Section 10 of the EStG, and the homeowners allowance (Eigenheimzulage), before finally being withdrawn completely.
In order to address the current shortage of housing in major metropolitan areas, there are plans to introduce a new Section 7b to the EStG. Unlike its predecessor, the new Section 7b EStG would be restricted to rental apartments. Alongside the 2% ordinary depreciation allowance that currently applies, a special depreciation allowance is set to be implemented, introducing a depreciation allowance of 10% in the first two years and 9% in third year following completion of construction. As a result, the combination of ordinary and special depreciation allowances adds up to 35% over the first three years. The remaining 65% would have to be distributed across the residual 47 years of the 50-year term for ordinary depreciation, in accordance with Section 7a Paragraph 9 of the EStG. This amounts to 2.13% per year and 1.38% in relation to construction costs.
The basis of assessment for the special depreciation allowance has been set at €2,000 per square metre of living space.
The allowance will apply to apartments either developed by the investor, or acquired by the investor in the same year as construction is completed.
The allowance is also restricted to building permit applications submitted after December 31, 2015 and before January 1, 2019. Building permit applications therefore have to be made before the end of 2018. In cases where no building permit is required, the date of the official notification that construction work has started will be the determining factor.
Apartments must also be used as rental housing for a period of at least ten years.
A further condition is that construction costs, or acquisition costs, may not exceed €3,000 per square metre of living space.
The special depreciation allowance is restricted to specific regions. In determining in which areas the special depreciation allowance should apply, the new regulation is linked to housing subsidies, the Mietpreisbremse rental price brake and the implementation of stricter rent caps. According to the stipulations, the regions in which the special depreciation allowance will support housing construction are those
which have been rated in bands IV to VI of the appendix to Section 1, Paragraph 3 of Germany’s housing benefits regulations, or
in which the Mietpreisbremse rental price brake has been implemented pursuant to Section 556 d, Paragraph 2 of the BGB, or
in which rental price increases have been capped at the lower rate of 15% in accordance with Section 558, Paragraph 3, Clause 2 of the BGB.
The special depreciation allowance can be used in income tax declarations made up to, and including, 2022.
Unlike the German Development Areas Act (Fördergebietsgesetz), these new regulations make no provision for a company to apply the special appreciation allowance if the company is a partnership.
As a result of the regulations contained in Section 15b of the EStG, it is not possible for closed-end funds to take advantage of the special depreciation allowance. Only direct investments in buildings and apartments are being supported and subsidised.
At three years, the term of the allowance is extremely short. The shortage of housing in Germany’s booming cities will not have successfully been dealt with by the time the support is withdrawn.
In order for the measures to have a tangible impact, it would also be necessary to increase the ordinary depreciation allowance from 2% to at least 3%.
Cabinet Agrees Special Depreciation Allowance for Apartment Construction
The HANDELSBLATT (03.02.2016) and the IMMOBILIEN ZEITUNG, FAZ and BÖRSEN ZEITUNG (04.02.2016) all reported that the German cabinet has agreed a draft law designed to encourage the construction of more housing in the country’s major cities. For the first three years after completion or acquisition, a special depreciation allowance of 10% in the first two years and 9% in the third year will apply. Building applications must be submitted before the end of 2018. The basis of assessment has been set at €2,000/m² of living space. The special depreciation allowance is also restricted to apartments with construction or acquisition costs of less than €3,000/m² of living space. The allowance is also limited to specific regions. In determining the so-called “assisted areas,” the new regulation makes reference to housing benefit rules, the Mietpreisbremse rental price brake and the lower-level cap on rent increases. Assisted areas will include areas rated in bands IV to VI of the housing benefit regulations, along with those that have already introduced the Mietpreisbremse and the reduced rental increase cap of 15%. Industry associations have generally been warm in welcoming the new regulations. However, the IVD was critical of the exclusion of the special depreciation allowance for partnerships and the relatively short period of three years over which the allowance can be applied. The shortage of housing in Germany’s major cities will not have been addressed within such a short timeframe. The FAZ reported further on 05.02.2016 that the German Construction Ministry is hoping to double its funding for housing construction to €2 billion per year through to 2020, resulting in a potential €10 billion of funding for social housing construction over the next five years. “Fundamentals and current developments in property tax law”: is the subject of an intensive BERLIN REAL ESTATE ROUNDTABLE seminar on April 18 and 19, 2016 in the InterContinental Hotel Berlin. Request your programme by email today: info@immobilienrunde.de
EY Survey: Municipalities Plan Property Tax Increases
The SÜDDEUTSCHE ZEITUNG reported on 05.02.2016 that 38% of German municipalities are planning to raise the assessment rates they use to determine property tax (Grundsteuer). This was revealed by a study carried by Ernst & Young (EY) over the last twelve months. In 2014, around €12 billion of tax receipts were attributed to property tax, of which €11 billion was levied as “Property Tax B” against buildings, developed land and land approved for development. The IVD was critical of the current trend. “We have seen a number of municipalities introducing excessive increases,” complained Hans-Joachim Beck of the IVD, explaining that this was largely due to the desperate financial situation many municipalities are in, often forced to turn to property tax receipts to counteract the drain of financial redistribution imposed on them by the country’s federal states. The problem is only exacerbated by the fact that tax authorities use rateable values from 1935 and 1964 as the basis for their calculations. Real estate industry experts and politicians have been pushing for meaningful reform for years. “Fundamentals and current developments in property tax law”: is the subject of an intensive BERLIN REAL ESTATE ROUNDTABLE seminar on April 18 and 19, 2016 in the InterContinental Hotel Berlin. Request your programme by email today: info@immobilienrunde.de
Landlords to Lose Minimum of €0.65/m²/month under Rent Index Manipulation Law
The German government’s plan to extend the reference period for determining local comparison rents in the nation’s rent indexes from four years to ten will lead to massive losses in the value of the country’s housing stock. This was reported by DIE WELT and the SÜDDEUTSCHE ZEITUNG on 03.02.2016, the HANDELSBLATT on 04.02.2016 and the FAZ on both 03.02.2016 and 05.02.2016. A study commissioned by the IVD and carried out by the Center for Real Estate Studies (CRES) has for the first time examined the impact of government plans on rent indexes in 50 towns, cities and communities across Germany. Despite positive market conditions, landlords are set to lose at least €0.65/m²/month even under the most conservatively modelled scenario. As a result, financial institutions and private investors looking to provide for their retirement would not even be able to expect that the returns on their investments would compensate them for inflation. This would be the case for more than 50% of Germany’s investment assets. As a result, it is to be expected that investors would put a hold on urgently-needed investment into the residential market and, as a consequence, the housing shortage in Germany’s major metropolitan centres would become even more severe. “The study paints a very clear picture: the proposed legislative changes are nothing more than a rent index manipulation act. Instead of playing with an open hand, the government is trying to introduce a back-door rent freeze. The model calculations made by the CRES clearly demonstrate the negative economic effects for property owners and tenants,” said IVD President, Schick. Among the fifteen biggest cities in Germany, Munich is predicted to register the largest discrepancy between the four-year and ten-year reference periods, resulting in a difference of €1.35/m²/month. Hanover and Stuttgart follow with differences of €1.25 and €1.11/m²/month, respectively. In Berlin the difference would amount to €0.76/m²/month. Duisburg was the only major city that would see rents rise if the ten-year reference period were used. Local comparison rents in the city would be set at €4.88/m²/month on the basis of the ten-year reference period, €0.05/m²/month higher than using the current four-year reference period.
3% Growth in Care Home Transactions
The IMMOBILIEN ZEITUNG reported on 04.02.2016 that the total value of transactions in the care home sector increased by 3% in 2015. According to figures released by CBRE, the only previous year with a higher total was the record year 2006, with €1.2 billion of deals. In contrast, the volume of investment in 2015 amounted to €834 million. “Even though we had probably expected more, €834 million is still a considerable sum,” said Dr. Jan Linsin of CBRE. The amount invested could have been higher but for a shortage of properties on the market as care homes improved their operating results. “Above all, private and non-profit operators have been reporting higher occupancy rates in their care homes,” said Dirk Richolt of CBRE. Initial yields in the prime segment narrowed for the third year in a row,
down to 6.25%. On the subject of yield compression within the care home sector, Linsin had the following to say: “Yield compression is definitely less pronounced than we have seen for core inner-city retail or office products.”
Berlin is Running Out of Office Space
According to DIE WELT on 03.02.2016, the vacancy rate for office space in Berlin was down to 6.3% at the end of 2015. The decrease was attributed to insufficient construction of new office space and the sustained appeal of Berlin to companies and the general population. Within a twelve-month period approximately 880,000 square metres of office space were leased, 43% more than in the year before. Transactions involving commercial real estate in Berlin reached €8 billion during 2015.
Mietpreisbremse: Rental Price Brake Doesn’t Work
In its edition on 28.01.2016, the IMMOBILIEN ZEITUNG reported that the Mietpreisbremse rental price brake has had little to no impact. This conclusion was drawn following an analysis of rents in Berlin, Düsseldorf, Cologne, Hamburg and Munich. Admittedly, the rents for new tenancy contracts did fall for a short time immediately after the Mietpreisbremse was introduced in June 2015, but this initial impact was short-lived. In Cologne, Hamburg and Munich rents have almost reach their pre-Mietpreisbremse levels again. In Düsseldorf (+3.5%) and Berlin (+2%), new rents are now above the levels seen in the month prior to the rental price brake’s adoption. It is clear that an accurate assessment of the Mietpreisbremse’s impact will require more time.
Mietpreisbremse – Is It Really a Paper Tiger?
By Dr. Rainer Zitelmann
Again and again, articles have been appearing to claim that the Mietpreisbremse rental price brake has had no impact. This has also been confirmed by many real estate practitioners. In my opinion it is a dangerous illusion to simply dismiss the Mietpreisbremse as a harmless “paper tiger”:
The worst is yet to come: The greatest dangers will arise when the Mietpreisbremse is applied in combination with the proposed second Tenancy Act Reform, which is expected to legislate that the nation’s rent indexes should be compiled on the basis of rental prices over the preceding ten years. I expect that this new law will begin its journey onto the statute books in the first half of 2016.
Even if large numbers of private landlords currently ignore the Mietpreisbremse and disregard the letter of the law, the big housing associations, whether state-owned or in private hands, will not be able to ignore the rental price brake law in the long-term. I also fully expect that tenant lobby groups and the media (“Your rights as a tenant – how to defend yourself against illegal rents”) will escalate their campaigns against those flouting the Mietpreisbremse and increase pressure on landlords. The rental price brake won’t remain a “paper tiger” for much longer.
Read also Rainer Zitelmanns Finance Blog.
Real Estate Prices Rose by 3.7% in 2015
The SÜDDEUTSCHE ZEITUNG reported on 29.01.2016 that prices for German real estate rose by an average of 3.7% over the last twelve months. The figure was revealed in the latest bulwiengesa German Property Index. Despite rising prices, experts see little risk of a bubble developing. Experts said that they expect to see the trend of conservative equity ratios, high repayment schedules and extended loan terms maintained. Low interest rates and positive currency exchange effects will continue to attract overseas investors to Germany.
Commerzbank: Indications of a Real Estate Bubble
The FAZ reported that house prices rose by almost 5% last year in its 27.01.2016 edition. Prices for condominiums in Hamburg, Cologne and Munich rose by 10% over the last twelve months, with even bigger year-on-year increases of 13% in Frankfurt and Berlin. These figures are the product of an analysis carried out by Commerzbank. And the trend is set to continue. Commerzbank has seen the first indications of over-heating in the real estate markets of Germany’s largest cities. House prices have risen noticeably faster over the last five years than rents or incomes. The portfolio of mortgage loans has also grown at a more accelerated rate. In contrast, the Bundesbank, together with Germany’s central real estate association, ZIA, have reported no signs of overheating in the german real estate market, as investments are being financed with comparatively low levels of debt.
Fewer Modernisations as a Result of New Tenancy Act
In its 29.01.2016 edition, the FAZ reported that Germany’s housing market could suffer a serious blow should Justice Minister Maas’ proposed second amendment to the country’s Tenancy Act be adopted. This was the conclusion drawn by a survey of 6,000 of the IVD’s member companies. The proposed Tenancy Act reforms include a broadening of the reference period used to compile the nation’s rent indexes from four years to ten. The plans also contain measures to cut the amount by which rents can be increased following modernisations from 11% to 8%. According to the IVD, a majority of respondents (73%) expect investment in residential real estate to decline as a direct consequence. 42% of those surveyed expect rents to rise in the medium-term as a result of housing supply shortages. The survey also highlighted the fact that historically low interest rates are a major factor in the sustained high levels of demand for apartments from owner-occupiers and buy-to-let investors.
CBRE & Berlin Hyp: Berlin’s Apartment Market Goes from Strength to Strength
DIE WELT (on 28.01.2016) and the HANDELSBLATT (on 29.01.2016) both reported that rents in Berlin increased by 5.1% last year. Prices for condominiums rose by 10.1% during the same period. These figures were revealed in the Housing Market Report Berlin 2015, jointly published by CBRE and Berlin Hyp. “The greatest pressures have been seen in the mid-range market segment, not at the lowest end of the market,” said Michael Schlatterer from CBRE. Average rents in Berlin have now reached almost €9/m²/month. “The limits of ability or willingness to pay have apparently been reached in Berlin,” was the assessment of Dr. Henrik Baumunk from CBRE.
Terraced and Town Houses Gaining in Popularity
As reported in the HANDELSBLATT on 29.01.2016, terraced houses in Berlin are enjoying an unbroken surge in popularity. “Terraced houses are the subject of exceptionally high levels of demand,” said Helmut Kunze of NCC. However, as a result of increasing land prices and rising construction costs, terraced houses in Germany’s capital are no longer the bargain they once were. The average price for a terraced house has now risen to €300,000. CD Deutsche Eigenheim is planning to sell its terraced houses in Falkenberg to investors, who will then be able to let the properties for an estimated €8/m²/month. “We have been observing substantial levels of demand for buy-to-let terraced houses,” explained Michael Stüber of CD Deutsche Eigenheim. Over the next six years, between 700 and 900 residential units will be built in Falkenberg. “2016 Kick-off Event: Real Estate Strategies of Institutional Investors”: is the topic of a special event on February 24, 2016 in Berlin’s Steigenberger Hotel. Request your programme by email today: info@immobilienrunde.de
Potential 1,600 Hectares for New Housing in 25 German Cities
According to a market report released by Catella, a total of 1,600 hectares of land in 25 of Germany’s A and B cities could be made available for housing construction by 2020 if it were rezoned. This would go a long way to creating much-needed residential space. An article on the Catella study appeared in the IMMOBILIEN ZEITUNG on 28.01.2016. In Germany, the total amount of land rezoned in this way has been falling constantly. Between 2002 and 2014, the amount of space across Germany which was subject to successful change of use applications shrank from 13 million square metres to 7.9 million square metres. Construction regulations are currently the most significant hurdle in rezoning land use. There are also a lack of investors who are willing to take the necessary risks.
Record Result for Frankfurt’s Investment Market
On 28.01.2016, the IMMOBILIEN ZEITUNG reported that brokers had registered record transactions on Frankfurt’s real estate investment market. There were 16 individual transactions of more than €100 million in Frankfurt during 2015. These large-scale deals were responsible for a combined €3.1 billion of investment. When the year’s smaller deals are included, CBRE puts the total for the year at €5.6 billion. This is the best result since 2007 and 61% above the ten-year average. According to the brokers at CBRE, 59% of investment can be attributed to foreign investors, who were responsible for acquisitions with a combined value of €3.3 billion. BNP Paribas Real Estate (BNPPRE) Frankfurt has forecast that foreign investors will increase their share of the investment market this year, accounting for between 60% and 70%. The amount of high-quality real estate coming to market decreased significantly, with only 57.7% of investment involving core and core-plus assets (Colliers). Prime yields fell by 20 basis points to 4.3%, dipping below 2014’s level. Nevertheless, the market in Frankfurt edges Munich
and Berlin in the attractiveness stakes. BNPPRE forecasts investment of €5.6 billion in Frankfurt’s commercial real estate market in 2016.
Cologne’s Residential Market Stabilises
A fresh study from KIB has revealed that property prices and rents in and around Cologne have started to increase once again. The study identifies the 2014 stabilisation of the housing market in the Cologne region as the major factor in this recovery. The KIB study was picked up by the IMMOBILIEN ZEITUNG on 28.01.2016. Historically low interest rates have provided homebuyers with a boost, and the growing number of students in the region, along with the improved labour market, have both led to a run on rental apartments.
Shortage of Office Space in Munich
As reported in the IMMOBILIEN ZEITUNG on 28.01.2016, a significant increase in employment is forecast in Munich through until 2030. As a result, demand for office and commercial space is also predicted to follow suit. Yet another record year is expected. CBRE has forecast that 200,000 m² of new office space is due to enter the market this year, slightly less than during the previous twelve months. Just a third of this new space is the result of speculative developments, which means that only a little more than 70,000 m² is actually going to be available on-market, nowhere near enough to satisfy pent up demand. Rainer Knapek of CBRE reckons that it will be 2018 before there are enough pipeline projects to meet the city’s requirements.
New Record for Stuttgart’s Office Rental Market
On 28.01.2016, the IMMOBILIEN ZEITUNG reported that around 290,000 m² of office space was either leased or taken-up by owner-occupiers in Stuttgart during 2015. A number of large-scale leases were agreed by industrial tenants. Forecasts indicate that this trend will not be maintained. The biggest leases and largest take-up of space all happened in a very strong Q4 2015. In particular, it was the ten leases for space exceeding 5,000 m² that put such a glow on the quarter’s figures. The largest individual lease was the owner-occupier agreement for 30,000 m² signed by Bosch for the Feuerbach IT Campus. Prime rents also set a new record, climbing to €22.80/m².
European Office Rents Losing Momentum
As the FAZ reported on 29.01.2016, rents for office space in Europe increased by 0.8% in Q4 2015 in relation to the same quarter a year earlier. In the same quarter in 2014, rents were up by 1.5%. Office rents have therefore lost some of their recent momentum. This is largely due to the weakness of the Moscow office market, which is struggling to recover and has seen rents fall by 4.8%. Paris also saw a slight fall of 0.7% in office rents. Following an increase of 2.7% during the same period a year earlier, this is however nothing more than the pendulum swinging back into place. Despite the completion of 1.9 million square metres of new office space, vacancy rates for the reporting period fell back slightly to 8.9%. Particularly low vacancy rates were registered in London and Luxembourg, at 3.4% and 4.1%, respectively.
Hamburg Leads with Logistics Take-up
The take-up of logistics and industrial/light industrial space in Hamburg during 2015 was up by 30% in comparison to the previous year, reaching 600,000 m², according to figures published by CBRE. This was reported by the IMMOBILIEN ZEITUNG on 28.01.2016. With these figures, Hamburg was the leading city in Germany. As the supply of appropriate space was limited, numerous sites were either revitalised or redeveloped. Rents remained stable and there was very little speculative development. A vast majority of the space take-up, representing 66% of the total, was within the city. A further 30% was concentrated in Billbrook, an eastern district of Hamburg. According to CBRE’s figures, prime rents stood at €5.40/m², while average rents were €4.76/m². Rental prices may have slipped since 2014, but they are still higher than the five-year average of €4.63/m². CBRE has forecast space take-up of around 500,000 m² for 2016.
New Record Set in German Hotel Transaction Market
As reported in the IMMOBILIEN ZEITUNG on 28.01.2016, German hotels with a combined value of €4.4 billion were traded in 2015. This was almost double the previous record set in both 2006 and 2007 (€2.3 billion). According to CBRE, investment during Q4 2015 alone, at €1.5 billion, was higher than the full-year transaction volumes in most of the previous years. In the three years since 2012, the value of transactions involving German hotels has more than tripled. Year-on-year, an increase of 40% was recorded. CBRE believes that 2016’s transaction volume could well approach the previous year’s level.
GERMAN REAL ESTATE NEWS
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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 Wuerzburg
Wuerzburg is an academic center and the main town in the Unterfranken administrative district. It also hosts several national administrative institutions. Accordingly, the public sector is quite large. In addition, the region is a significant trade center, ranking as the third-largest port in the Free State of Bavaria. Consequently the trade and transport sector’s share of regional production is above average. Traditionally, Wuerzburg’s industrial sector has specialized in printing, machine building and metal processing. But in recent years, its emphasis has shifted to more strongly growing high-tech segments, for instance biotechnology. Overall, the region’s economic configuration is fairly well balanced, with the largest share of gross value added generated by the service sector.
Feri rates Wuerzburg as a business location “C”, which is unchanged compared to the 4th quarter 2014. It translates into “average potential, average risk”. With this rating result the city ranks 14th in the comparison of German B-Centers.
Office Real Estate
Regarding office real estate Feri rates Wuerzburg “B+”, which is unchanged compared to the 4th quarter 2014. The city ranks 1st among office locations of German B-Centers. Feri awards the office top locations “A” and the side locations “B+”
On Wuerzburg’s office real estate market, even though the vacancy rate is low, nothing close to a supply shortage has emerged in the past. Demand has been weak and focuses on small office units. A cyclical economic upturn in 2006 supported rising office space rents in both the inner city and the suburbs. After decreasing rents, caused by the city’s economic situation, rising office employment rates will lead to increasing office rents in Wuerzburg, in both inner city and suburban locations.
Retail Real Estate
In the comparison of German B-Centers regarding retail real estate Wuerzburg placed 13th with a rating result of “C”, which is unchanged compared to the 4th quarter 2014. Feri awards the retail top locations “B+” and the side locations “D”.
Wuerzburg is a regional retail center with an attractive medieval city center. Central city retailers profit from Wuerzburg’s large catchment area: other significant population centers are about 100 km away. Yet, retail rents at both top and secondary locations have declined through most of the past years. Only recently the rents have stabilized. Although the volume of available retail space in the inner city is adequate, Wuerzburg lacks appropriately configured modern store space. Therefore, the region is mostly unable to satisfy demand from national and international retail chains. Plans to build a new shopping center, “Wuerzburg Arcaden,” were scrapped due to apprehensions about disturbing the existing supply-demand balance in the city center.
Residential Real Estate
When it comes to residential real estate, Wuerzburg placed 8th among German B-Centers with a rating result of “C”, unchanged compared to the 4th quarter 2014.
Residential rents in Wuerzburg have risen almost continuously for more than a decade. The supply of bigger, wellequipped apartments in central locations is scarce. Demand from students supports the town’s residential rental market. However, young families are not a major factor in Wuerzburg’s rental housing market, because many of them purchase property in the scenic surrounding areas, where residential real estate is notably affordable. New building activity in the multifamily housing segment has declined during recent years, and for the coming years, too, only a limited expansion in supply is projected. At the same time, the level of demand should stay stable. Thus, one can expect that rents for both new and existing apartments in Wuerzburg will continue to rise.
House and condominium sales in Wuerzburg are hurt by a large, low-priced supply of residences for sale in neighboring communities and the wider peripheral area. Accordingly, the price trend on Wuerzburg’s housing sales market has been quite weak for an extended period. Detached single-family houses comprise the segment for which demand is strongest. For this type of residence, supply in the best locations is limited. However, supply is not at all tight in less popular areas of the city. Recently, the town made more building lots available for both detached singlefamily houses and condominiums. This initiative should help to stem an ongoing pattern of out-migration by families. We expect prices for both condominiums and houses in Wuerzburg to rise in the coming years.
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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