Real estate market: investors unsettled

The real estate market is under pressure. Thomas Olek, CEO of Publity AG, warns that the current expropriation debate is unsettling investors.

Instead of building new flats in order to solve the current housing shortage, some experts say that the questionable means of rent brakes and expropriation demands will create unrest. The initiative “Deutsche Wohnen und Co. enteignen” wants to sell the real estate of large landlords in Berlin.

All companies with more than 3,000 rented apartments would be affected. In addition to the already agreed rent brakes for apartments, the Berlin Senate wants to introduce a rent brake for commercial properties in tense areas throughout Germany. In addition the senate wants to resolve a Upper House of Parliament initiative.

International investors deterred

Fears and worries are being voiced that this will deter investors at home and abroad. Thomas Olek, CEO of Publity AG, has a clear opinion on this, which he expressed in an interview with the Frankfurter Allgemeine Zeitung at the beginning of August: “The concern is not exaggerated. Politics has become an essential part of the discussion with every major international investor”.

Germany must grow with the pounds of legal security, market economy, social peace and infrastructure. However, the current debate on expropriation and rent regulation is shaking this basic trust.

Olek is therefore not worried. Because if short-term Anglo-Saxon investors are on the seller’s side, this will leave more volume for those who think in different time perspectives – especially from Asia.

Good prospects for the Rhine-Main region

Olek is convinced that Frankfurt and the Rhine-Main region offer particularly good conditions for investing in real estate. As the location of the European Central Bank (ECB), the Main metropolis will benefit from Brexit. The airport and skyline are unique in Germany. “The demographic and economic framework data are correct. Unlike many Germans, international investors see high price fluctuations as a positive opportunity. Yes, Frankfurt’s importance will increase nationally and internationally in general”.

In addition to Paris and Monaco, Frankfurt is currently attracting particularly positive attention. “Apart from cyclical and monetary policy aspects, office properties pay off above all when added value can be achieved.

Publity AG – the first adress

Olek heads Publity AG, which has established itself as an investor in the commercial real estate market since 1999. In an interview with Immobilien-Brief, he explains the business model at: “Our business is value creation. Our approach is ‘manage to core’. This means that we prepare our properties for core investors.”

Source Cover Image: iStock / jotily