No party, no hangover

frankfurt-1Prices for German real estate will not adjust to the same extent as UK property, according to Neil Turner, head of fund management for Schroder Property Investment Management, speaking at an IPD conference earlier this week:

Although the repricing in Germany has not been as quick, I don’t expect it to be as big as in the UK or in other places in Europe. 

We have heard this before, for instance in a survey conducted by the organiser of Expo Real:

[] experts believe that the European countries, in particular Germany, will recover fastest from the crisis. In their view, office property and retail space will benefit soonest from a renewed upswing. They also forecast good development prospects for logistics and residential property.

 Mr. Turner has been ‘very nervous’ about the Frankfurt office market because of its reliance on the financial services sector. He said:

Frankfurt is the market which gives me the most concern. I am pessimistic about the prospects for the occupational market going forward. Vacancy rates are still high and are only going one way. Unemployment is only going one way too.

 There are a few reasons to be mentioned for the German resilience (and I listed a few here).

Or, according to PropertyEU’s April’s editorial: no party, no hangover (p.3). I couldn’t have put it more accurately.