2023 marks the end of a turbulent year – emerging from the crisis with momentum!

We are living in times of multiple crises, and no one can bear to hear the list anymore. A lot has happened in the past three years, which has shaken and challenged the entire economic development and, of course, the real estate industry.
After more than a decade of success, with the real estate industry rushing from one record year to the next, the tide has clearly turned. 2023 will be remembered as the year that pushed many players in the real estate industry—investors, portfolio holders, project developers, brokers—to the brink of economic survival. And many beyond that. With a rise in insolvencies in the construction industry of over 20% compared to the previous year, the real estate industry was particularly affected by the manifold crises in 2023.
The precarious situation in which the industry currently finds itself was also underscored by the recently published “Real Estate Market Report Germany 2023” by the expert committees: Planned construction areas often failed to find their way onto the market, construction projects were not realized, and the transaction market was paralyzed.

But even in this crisis year, there were reasons for optimism. The market behavior of many players became more dynamic again. The shock-induced paralysis of the past two years seems to have been overcome, at least in principle. The seemingly free fall in real estate prices also slowed toward the end of the year, with buyers and sellers increasingly finding common ground – and more favorable financing conditions are expected overall for the new year, making a general recovery in the real estate market seem possible in the second half of 2024.
If interest rates remain stable and inflation rates low, an economic upturn with rising real wages could boost demand for real estate again.

Another lesson learned from the crisis is that quality always pays off. Especially in an environment of buyer reluctance and increased demands when purchasing real estate, it has become clear that location and ESG readiness are key factors. In our new construction project THE FLANEUR in Berlin-Moabit, we have consistently focused on modern technology and thus achieved a building that is largely energy self-sufficient. Combined with the central downtown location directly on the Spree River, we were able to offer attractive apartments – with great success! In 2023, 40% of the condominiums in THE FLANEUR were sold, reaching a sales level of around 85%! We want to build on this success in the new year: with our two projects on Koloniestraße and Ansbacher Straße, we are developing high-quality, energy-efficient properties with innovative space concepts that, thanks to their proximity to Wedding and their central location in City West, are at the heart of Berlin life.
For 2024, we naturally hope to see a further recovery in the real estate market and an overall improvement in economic development. We have all been through a lot and overcome many challenges together during the past years of crisis – something we as a society can be very proud of! Now, a step back towards normality would do us all good.

We wish you all every success and good health in the new year 2024!