Residential real estate stocks are currently performing significantly better than commercial real estate stocks. At 21.1 points, the basic sentiment for residential real estate shares remains at a high level in the first half of 2024. In the second half of 2023, it was still at 22.8 points. In contrast, the basic sentiment for commercial real estate shares is -7.2 points. In the second half of 2023, the basic sentiment was -10.7 points. This is according to the "Kirchhoff Sentiment Indicator for Real Estate Stocks".
88% of the analysts surveyed and 81% of the company representatives surveyed also expect property values in commercial real estate to fall in 2024. In the residential real estate sector, only 55% of the analysts surveyed and 73% of the company representatives surveyed expect property values to fall. In the long term, however, the respondents see only "a lower probability of further devaluations" for commercial properties and only "a low risk of value losses" for residential properties.
Although the development prospects for real estate shares are seen as positive, challenges remain. The financing environment and valuation levels are seen as current problems. Environmental social governance requirements and regulation are seen as long-term challenges. Interested parties can read the full study free of charge as a PDF at kirchhoff.de.
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