In the first quarter of 2019, the Deutsche Hypo Real Estate Economy Index (REECOX) reached 303.4 points at the start of the year. This represents an increase of 2.0 per cent compared with the end of 2018.
The current increase in the real estate economy in Germany can be put down to the positive development of the DAX and DIMAX, which rose by 9.2 per cent and 11.9 per cent respectively in the first quarter of 2019.
Alexander Firsching, Head of Deutsche Hypo's Berlin office, sees the German real estate market as a "safe haven" which also enjoys great attention from international investors. With its sustained growth momentum, the focus is particularly on the Berlin real estate market.
The REECOX presents the development of the real estate economy in Germany, France, Great Britain, Poland, Spain and the Netherlands on a quarterly basis. The calculation is made for each of the six countries using five input variables. In Germany, these are the DAX, the DIMAX, the Economic Sentiment Indicator of the European Commission for Germany, the base interest rate according to §247 BGB and the interest rate for ten-year government bonds.