Blockchain is starting to filter through to the German real estate market, with many in the industry hoping to gain a major competitive edge if they embrace it head-on. Some real estate investors are starting to dip their toes in the water by launching funds via blockchain-powered platforms.

REFIRE Comment

Blockchain: what does it mean for Germany’s real estate market?

Multifamily investment reached a new high of EUR40bn across eight European markets, including Germany, tracked by Savills last year, the highest ever recorded and up 27% on 2017.

Multifamily investment tops new high of EUR40bn

This was the week that a shaken Angela Merkel told her fellow citizens in a Munich beer hall that the EU must now be prepared to look after itself, and cast aside any expectations of solidarity with erstwhile partners the UK and the US. After she’d had several days of enduring Donald Trump’s presence at close quarters, we were struck by the decisive tone in Merkel’s manner. The last vestiges of hope in salvaging something of the old order were – reluctantly – being wiped away. A line was being drawn. Merkel and her ally Horst Seehofer, the Bavarian prime minister, raised their beer glasses in a toast, and buried any past hatchets between them. Their CDU/CSU alliance sent out a strong message of intent as to what we can expect in the run-up to September’s national elections. Barring a disaster, Merkel is on course to win again.

All Trumped out, as Frau Merkel sets determined new course

Currently, crowdfunding regulation in Germany states that it is exempt from the kind of regulatory controls imposed on senior lending and publically-raised equity, which are heavily regulated. At the moment, if the total capital raised by a crowdfunding project does not exceed €2.5m, it is not necessary to have an authorized investment memorandum. Individual investors are not allowed to invest more than €10,000 in a crowdfunding project and it is ranked behind the senior loan tranche.

German government mulls change to crowdfunding regulation

In response to a request on the part of Germany’s Alliance ’90 and Green Party, the German government has said that proposed solutions will be presented at the Finance Ministry’s conference on 19 October this year. The property transfer tax has been the subject of heated debate in Germany, because while private individuals have no choice but to pay it when they buy a home, many companies dodge it by availing themselves of share deal exemptions when they buy properties. It is estimated by the German government that of all the residential portfolios comprising more than 800 units transacted between 1999 and 2016 in Germany, share deals were used in 71% of cases. In 35% of deals, buyers acquired less than 95% of shares but in 36% of deals, they actually acquired more than 95% of shares, according to the German government.

German government to abolish tax advantages on share deals

As Gary Lineker famously com- mented, “Football is a simple game. Twenty-two men chase a ball for 90 minutes and at the end, the Germans always win.” Nowadays, in the shadow of Brexit, the world of real estate is beginning to feel a little bit like that.

Faith in German bricks and mortar, as the tide of revolution recedes

The latest MIPIM in Cannes was, by almost universal consent, one of the most mellow and easygoing in recent years, at least for German participants. The uninterrupted sunshine, the positive mood in the halls, the varied and frequently lively programme of seminars and panel discussions – all served to support an atmosphere that facilitated fruitful dialogue, despite the geopolitical uncertainties lurking in the wings, offstage.

In God we trust. All others must bring hard data.

Germany’s left-of-centre SPD , the junior partner in the governing coalition in Berlin with Angela Merkel’s CDU/CSU grouping, has been at the forefront of a new drive to dampen the country’s residential housing boom, now entering its seventh year.

All change at Germany’s SPD while election battle lines get re-drawn

The big institutional players are all convinced that 2017 will see – yet again heightened demand for investment in real estate. This applies particularly to Germany, whose status as a safe haven has only strengthened as the number of economic imponderables elsewhere have multiplied.

Grab that German life-boat while you can, ahead of a ‘train-crash’ Brexit

One of the perks of editing a publication like REFIRE is the opportunity it affords your editor to hang out with people who can see into the future. Their relationship with their crystal ball, tea leaves, tarot cards, goats’ entrails or other favoured form of divination helps them steer an unerring path through the most turbulent cross-winds, knowing what’s likely to emerge on the other side.

Die Gedanken sind frei, wer kann sie erraten...?

Now in our tenth year of publication, the REFIRE Intelligence Report has developed a strong reputation for authoritative reporting and analysis of the German market for real estate finance. REFIRE is read by institutional investors who simply need to know what is happening on continental Europe's most important market for real estate, whether on the debt or the equity side. Our readers trust us for our local market insights and close connections with key market players in Germany, and rely on us for qualified comment on significant market developments.

hubhopper

REFIRE Comment

hubhopper