Economy & Real Estate Q3 2024

In this issue, we present the latest developments and trends in the economy and real estate markets. Our focus is on the dynamic changes in the DACH region as well as global developments that significantly impact our industry.

The economic environment remains challenging, particularly in the DACH region. Despite the German government's increased growth forecast of +0.3% for the current year, the outlook remains subdued. Despite the rise in consumer spending by private households the government cannot fully offset the decline in gross fixed capital formation. Similarly, in Austria, no growth is expected following last year's recession. In contrast, Switzerland shows resilience with positive growth forecasts driven by rising exports and private consumption.

The real estate markets seem to have hit rock bottom. Data is now indicating an initial market revival, especially in investments in residential portfolios. Despite a decline in building permits in Germany and a continuing tense market situation, investor confidence is growing. In other major European cities, the real estate market is following a similar pattern, with Madrid experiencing a remarkable real estate boom.

After a period of key interest rate increases, the ECB has begun to lower the interest rate level, potentially marking the start of a longer path towards further rate cuts. At the same time, the US market shows remarkable resilience despite high credit rates and inflation. The stock and cryptocurrency markets are seeing strong gains, highlighting the unique dynamics of these asset classes.

The current developments show that markets are in a constant state of change. The ability to respond flexibly to these changes and make the right decisions is crucial for success. With this edition of our Research Quarterly View, we aim to provide you with well-founded insights and analyses to help you better understand and capitalize on the opportunities and risks in this dynamic environment.