Germany probably in best position to master euro crisis
November 07, 2011
According to RICS, the real estate market in Germany may get through the euro crisis more smoothly than in any other region. Prospects for the market in Russia are also good. Otherwise, rising rent levels are expected only in Poland and Austria. "In Europe, Germany seems best positioned to withstand the ongoing euro and government finance crisis," says the latest RICS survey. Accordingly, demand for space, rent levels and capital values developed positively in the third quarter in Germany. They may keep on going upward in the 4th quarter, as well. However, the outlook is less positive than it was in the previous quarter. In contrast, the report says, markets that have otherwise shown strong performance, such as France, are meanwhile showing significant weaknesses. Worldwide demand for space declined in almost half of the analyzed countries.