Warburg-HIH Invest Real Estate predicts that demographic changes in Germany will increase demand for secure investment assets and that the result will be continual downwards pressure on yields. The company’s Head of Research at Warburg-HIH Invest Professor Dr. Felix Schindler says that “Real estate will remain a sought-after asset class in the 2020s.” He said that the ECB key lending rate will remain unchanged at 0.0 percent but that the eurozone will experience slower GDP growth than in 2019. He also predicted that inflation would remain below 2 percent for the coming year and warned that any significant deterioration of the economic situation in the eurozone could actually prompt a further interest cut by the ECB. As far as the real estate investment markets go, Schindler expects yield levels to remain low given the continuing intense competition for core assets continues. “In Europe, the post-Brexit situation in the United Kingdom implies a certain catch-up potential,” he said.
Photo: Warburgo-HIH Invest
