Real Estate Market
In the first quarter of 2025, a positive development was observed in the German real estate market. The nationwide median price for condominiums rose by 1.1% compared to the previous quarter, while the prices of single-family and two-family houses increased by 1.2%. The rental market also saw a moderate recovery, with a rise in new contract rents of 0.8% compared to the previous quarter. In the metropolitan areas, the increase in rents was particularly pronounced, with a rise of 5.8% compared to the previous year.
Financial Markets and Economy
The German economy shows signs of stabilization, supported by ongoing economic stimuli. Pictet Asset Management forecasts a growth of the German economy by 1% per year over the next three years. The Euro has gained strength against the US Dollar, which could positively impact trade.
Corporate News
German companies are showing improved sentiment despite uncertainties due to announced tariffs on cars. The ifo Business Climate Index rose to 86.9 points in April, representing the fourth consecutive increase. Particularly, the service and construction sectors contribute to this positive development. However, German automobile manufacturers like BMW, Mercedes-Benz, and Volkswagen are under pressure due to announced US tariffs on imported cars. These tariffs could negatively impact the stock prices of these companies, especially for Porsche, which imports its expensive models entirely from Europe.
Stock Markets
The DAX remains stable and recently increased by 1.01%, indicating improved sentiment among companies. Despite these positive developments, uncertainty remains due to tariff issues, which is reflected in the future business expectations of companies.
Summary
Overall, the markets in the German-speaking area show a mixed picture. While the real estate market and economic development are positive, the tariff issues and uncertainties negatively impact the financial markets. Private investors and small investors should consider these factors in their decisions.