Real Estate Economies in France and Spain Quickest to Recover
Real Estate Economies in France and Spain Quickest to Recover
The Euro Score of the Deutsche Hypo REECOX index brightened noticeably in Q1 2019. The upward trend is manifest in all six of the countries studied. Indeed, market evidence suggests that the trends were virtually analogous even in the past, and shows how close the ties among European countries are.
Overall, the European real estate economy ended 2018 with a negative performance that was definitively influenced by the clearly downward trend seen during the fourth quarter. Yet the first quarter of 2019 returned to a positive performance so that the year started off with a modest recovery. The slightly positive development (+1.3 %) in January made it the first month of growth after a downturn that lasted four consecutive months. And while February (-1.1 %) more or less caused the performance to level out again, March saw a return to the upward trend (+1.3 %). While the first quarter proved quite volatile, the Euro Score ultimately returned a positive growth of 1.6 % that brought it up to 236.8 points. The Euro Score represents the weighted mean of all six country scores that we calculate quarterly on the basis of the Deutsche Hypo REECOX real estate index.*
This positive pan-European trend essentially applies to all countries studied within the framework of the Deutsche Hypo REECOX index. Trends in France and Spain were particularly positive. Having suffered serious setbacks the year before, they registered growth in all three months of the first quarter. These countries also topped the average with their quarter-end total for Q1. The real estate economy in France gained by 3.2 %, while the rate of change in Spain was even higher at 3.8 %. While the other countries did not see upward growth in every month of the first quarter, their setbacks amounted to less than one percentage point, with the exception of the United Kingdom.
Sabine Barthauer, Members of the Board of Deutsche Hypo, said: “We keep seeing the close ties even in our day-to-day business: Many investors engage in cross-border transactions and pursue pan-European strategies. The entire business community is taking advantage of a unified Europe.”
The REECOX index maps the quarterly trend of the real estate markets in Germany, France, the United Kingdom, Poland, Spain and the Netherlands by calculating scores on the basis of five input variables. For the latest report and additional details, please go to the index homepage.
* The Deutsche Hypo Euro Score lets you see at a glance how the European real estate economy is developing collectively by gathering the real estate economy figures of each country in a compact score for Europe as a whole. The score is calculated by weighting the various real estate economies according to the significance of each country’s investment market. This keeps an excellent real estate economy to have a disproportionate effect on the Euro Score if the size of the underlying market is relatively small.
Contact person: Tobias Kassner, Head of Division Industrial and Logistics Markets at bulwiengesa, kassner [at] bulwiengesa.de
