Germany's property sector is under stress, prompting firms to call for government support, property developers to file for insolvency and share prices of landlords to plunge.
Jobs in the building industry have risen steadily since the financial crisis more than a decade ago, but growth is slowing sharply.
Data published on Tuesday showed just a 0.1% year-on-year increase in May in jobs, the slowest rise in 10 years.2. PLUNGE IN NEW CONSTRUCTIONin Germany during the first half of the year.It's just the latest in a flurry of indicators that show real estate in Germany is in a deep funk. New building permits in Germany dropped 27% during the first five months of this year, compared with the same period last year.
"Many, many property developers at the moment are postponing projects or slowing them down," said Francesco Fedele, chief executive of BF.direkt, a property financing consultant.Vonovia, Germany's largest real estate group, serves as a bellwether for Germany's property sector. Its shares have underperformed Germany's blue-chip DAX index.
Investment volumes are down across Europe, but the fall in Germany brings transactions to 2012's levels, according to Jones Lang LaSalle.Our Standards:Covers German finance with a focus on big banks, insurance companies, regulation and financial crime, previous experience at the Wall Street Journal and New York Times in Europe and Asia.
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