Analysts expect no further upward potential for residential shares

11/07/2018

German analysts are for the first time anticipating negative development for residential property shares, while expectations for commercial property shares remain optimistic. This is the result of the third “Stimmungsindikator Immobilien-Aktien” (Property shares barometer) by Kirchhoff Consult. The skepticism for the housing segment with a negative indicator of 2.1 points is primarily based on the growth of recent years, the report states. It appears that a plateau has been reached, so none of the analysts surveyed expects rising rates in the next twelve months. Commercial property shares, on the other hand, achieved an indicator of 37.5 points, as they did six months ago. Here, the analysts point toward the increasing significance of organic growth, and see great growth potential particularly in the value-add segment. The total index dropped from 21.4 points at the last survey to 8.3 points due to the housing segment.


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