Exciting #insights into Q2 2024!
The current economic environment is characterized by a new focus on reviving the economy. Following a period of high inflation and subsequent interest rate hikes, many western economies are experiencing low economic growth. As a result, economic policies are now geared towards stimulating the economy rather than fighting inflation.
In contrast, the US economy stands out for its strong performance, especially when compared to German-speaking regions. With robust macroeconomic indicators and historically low unemployment rates, the #US remains a top international investment destination.
The German housing market is characterised above all by a low level of construction approvals with the forecast number of completions also low. The property lending volume slumped with the sharp rise in interest rates. Private households are delaying purchases and constructions. However, this scenario fosters a stable rental market with growth potential, particularly in multi-family residential buildings primarily owned by professional investors.
Economic forecasts for 2024 have recently been raised again, and the US economy is expected to continue to deliver positive momentum.
In the US real estate market, we expect rents to rise slightly while purchase prices remain flat. Real estate investments continue to offer stable cash flows, outperforming other asset classes. Notably, metropolitan real estate markets exhibit diverse dynamics, presenting varying levels of opportunity and risk.
Interested in exploring opportunities in the residential investment sector? Contact us to discuss how to effectively assess and navigate the current investment environment.
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