JLL Thermometer: Just under half of real estate investors stick to plans
JLL surveyed owners and occupiers in Germany on their assessment of the market. According to the survey, transaction activity is likely to lose momentum in 2020; 48% of investors intend to stick to their transaction plans.
In order to provide more orientation in times of the Covid 19 epidemic, JLL Germany wants to continuously ask investors, users, developers and banks about their assessments over the coming weeks. For the first "JLL Thermometer", the consulting firm surveyed around 300 market participants in Germany between March 25 and 31, 2020.
The results reflect clear trends: More than half of occupiers (56%) want to postpone decisions on new leases and contract extensions for the time being. In turn, three out of four owners (76%) think they will have to make concessions to their tenants in order to survive the crisis together. The majority of investors (77%) expect the Corona crisis to have a negative or very negative impact on real estate markets.
Transaction activity on the real estate investment market in Germany is expected to lose momentum. At 48%, less than half of investors say they are sticking to their transaction targets for 2020. A good third, on the other hand, are certain that the targets can no longer be maintained. For more than half of the respondents, this is partly due to the fact that they expect it to become noticeably more difficult to obtain outside capital for investments in the coming months. 54% assume that stock values will develop negatively in the crisis; one in twenty respondents even expects very negative effects. At the same time, the crisis is an additional boost for digitization in the industry. Almost three quarters (74%) expect rental and purchase transactions to be handled much more digitally in the future. (bw)
- More details on the results of the JLL Thermometer in the upcoming 297th issue of Schweizer Immobilienbrief.
