HOCHTIEF Projektentwicklung

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News + Stories

The everyday working life of our project developers is influenced by many factors and different issues and aspects. We introduce you here to such themes and stories, present our own studies, and evaluate current industry information. You will also find links to interesting reports and relevant announcements both online and from other media on our website.

October 2016 | Lot trading is pushing up prices

One price record is chasing the next in the real estate market. Housing prices, for instance, are said to have risen by an average of three percent across Germany during the second quarter of this year compared with the first three months, resulting in a year-on-year increase of 6.3 percent. The Central Bank’s low-interest policy and local authorities who are allocating too little land for construction are seen as the price drivers here. But there is another aspect that has long been ignored: “Lots are being bought and/or sold by private owners in many cases without any clear intention of developing them,” says Gordon Gorski, Managing Director of HOCHTIEF Projektentwicklung GmbH.

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September 2016 | Hotels as the new passion

With the continuing run on German real estate, local hotels have also become the focus of investors from all over the world. Where this type of real estate was once seen by most as too risky, in the first half of 2016 alone investors have acquired hotels in the German market with a value in excess of two billion euros. This is 35 per cent more than in the same period last year. “Hotels have meanwhile become an asset class in their own right in the German investment market,” confirms Gordon Gorski, Managing Director of HOCHTIEF Projektentwicklung GmbH, adding, “They are particularly popular with institutional and private investors.”

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August 2016 | Shortage of construction sites

Building lots are scarce—particularly in attractive downtown locations in the Top 7 cities. This is pushing up lot prices and making it more difficult for project developers to acquire suitable spaces. In the meantime, some sellers’ asking prices are forcing up entry prices so much that the limits of all other parameters are being reached, rendering it difficult to make reliable calculations. Competition between different types of usage is constantly on the rise. In the view of Gordon Gorski, Managing Director of HOCHTIEF Projektentwicklung GmbH, the main victims here are the residential and office segments, and he says that diverting to urban outskirts may help in building residential projects but would achieve very little in the area of office real estate.

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Juli 2016 | Analyse Refurbishment: Almost 700,000 square meters under construction

Refurbishment is in—at least in the case of private project developers. According to research by HOCHTIEF Projektentwicklung, 690,000 square meters of existing space are undergoing refurbishment in the top 7 locations alone this year. The company used its own data collections and external study results. Residential space accounts for some 60 percent of the entire development space, office premises only for about one fifth. More than half of the properties, in which primarily office space is refurbished, are nevertheless mixed-use real estate. More than a fourth of the existing buildings, in which predominately residential housing is created, is undergoing a conversion. Most of these buildings were housing offices in the past. "Mixed use has become increasingly popular with developers and investors and in light of the housing shortage in the top 7 markets, conversion is an important mainstay of refurbishment by now," explained Gordon Gorski, General Manager of HOCHTIEF Projektentwicklung GmbH.

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June 2016 | Smart City—more than just a buzzword?

Big cities face big challenges. Not only is a lot of affordable living space required in a short time, but urban development should also be both green and socially sustainable. Digital technology that can help to conserve resources or promote collaboration is already available today. It can, for instance, control a house’s energy consumption, and automate mobility. At national and international level, any number of studies and first experiments are currently being conducted, seeking ways to meaningfully network the city of the future that would truly be useful to its inhabitants.

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March 2016 | Analysis: Joint Ventures for project development

Should we join forces or not? That is a question that developers ask themselves every time they are faced with a new project. The purpose of this kind of cooperation is to share equity capital and risks, or to benefit from the partner’s technical know-how. Research by HOCHTIEF Projektentwicklung now reveals where this kind of cooperation is generating what volume. The company used its own data as well as the results of external studies. Between 2011 and 2015 a total of 2.25 million square meters of space was completed on the basis of joint ventures in the Top 7 cities alone. These Project partnerships were “most diligent” in 2011 and 2013, with a combined total of almost 1.1 million square meters.

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March 2016 | Why speculation is back again

In its No. 3/2016 issue, the “Immobilienwirtschaft” magazine goes looking for answers and initially finds a very promising starting situation: low interest rates are leading to high investment pressure. Investors are tearing their hair out searching for worthwhile real estate investments. Transaction volumes and residential investments are breaking records. But project developers are running out of construction lots. Put simply, undeveloped lots in premium locations in the Top 7 cities are virtually non-existent. As a result, supply remains virtually static or is even declining, while demand is constantly increasing.

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February 2016 | Not location, location, location but ABBA

The “Handelsblatt” examines the ABBA strategy in the real estate market. ABBA lost its status as a hot tip long ago and the business newspaper points out that, according to an Analysis by the Helaba Bank, compared with the classic focus on “location, location, location”, this approach does entail higher risks. ABBA investors buy in the typical(premium) A-cities – the Top 7, in other words – in B-locations as well as in the so-called B-cities such as Bremen, Hanover, Dortmund or Nuremberg in (premium) A-locations, or they mix both approaches in the hope of turning a better Profit.

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December 2015 | Analysis Residential real estate market: Berlin has most residential space

The residential real estate market is booming in Germany. It appears that construction is going on everywhere—at least in the metropolises. The Top 7 cities alone account for combined residential space of 3.8 million square meters currently under construction by private project developers. What is nonetheless astonishing is that despite population growth in the major cities, the area under construction is only around 200,000 square meters more than in 2014. In Frankfurt and Stuttgart, construction volume is even somewhat lower. By the end of this year, 2.2 million square meters of residential space will have been built. This is according to research by HOCHTIEF Projektentwicklung which the company based on its own data and the results of external studies.

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September 2015 | Study 2015: Real estate market in Berlin

The Berlin project developer market continues to grow and appears to be unstoppable. The volume of project developments completed or under construction in the capital in the office, residential and hotel segments rose by 15 percent to 7 million square meters in year-on-year comparison. This is the finding of the study – "The Real Estate Market in Berlin" – commissioned by HOCHTIEF Projektentwicklung

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August 2015 | Analysis hotel real estate market: Frankfurt has most space for "outsider" beds

If all goes to plan with the realization of hotel projects in the Top 7 locations, around 160,000 square meters of space for city tourists or temporary residents will have been created by the end of this year. This is the result of research by HOCHTIEF Projektentwicklung conducted on the basis of its own statistics and external studies. What is surprising is that, despite overnight stays tend to rise, there has been only a small increase on last year's figure of 158,000 square. There has, however, been a shift in the "balance of power" between the Top 7 locations.

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November 2014 | Analysis Refurbishment – Berlin leads Top 7 ranking

Perhaps never before have so many square meters of existing built area been treated to or earmarked for refurbishment in Germany's Top 7 locations as in this year. This was the finding of research carried out by HOCHTIEF Projektentwicklung. The company examined both its own data and the results of external studies. The combined seven cities have an area of over 730,000 square meters for refurbishment whereby the area where building is actually taking place and the area planned for refurbishment are approximately equal.

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August 2014 | Study 2014: "Real estate markets in the Berlin-Potsdam metropolitan region"

The project development market in the Berlin-Potsdam metropolitan region continues to grow. For the period under observation, 2011 to 2018, the volume of project developments completed, under construction or in planning, stands at 7.66 million square meters, thus reaching new record levels. This is the finding of a new study “The Real Estate Market in the Berlin-Potsdam Metropolitan Region” which was commissioned by HOCHTIEF Projektentwicklung and the Berliner Volksbank.

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May 2014 | Analysis: Forward deals? – Sure, but not everything and not everywhere

Which investors will invest where and in which projects with a forward deal? HOCHTIEF Projektentwicklung looked into these questions. The company monitored transactions on the German real estate market up until back in 2008. Dr. Christoph Husmann feels that the answers hold a few surprises in store but also provide a good picture of the buyers and their respective behavioral patterns.

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March 2014 | Analysis: Downtown or suburbs—where are tenants going?

In recent times voices have been heard in this connection, pointing out that more companies, especially large ones, are leaving downtown locations, choosing to move to the city environs or the suburbs. We take a look at the top-five office locations in Frankfurt, Hamburg, Berlin, Düsseldorf and Munich and explain why this assertion does not hold true overall–at least for the German office market.

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December 2013 | Real estate financing: Stable environment

The classic banks have become more cautious in the loan business as a consequence of the financial market crisis. Some institutes have even completely withdrawn from the financing of commercial real estate, for example, the Hypothekenbank Frankfurt previously active as Eurohypo and the Commerzbank. However, the financing gap feared and prophesized by many has not appeared. Our feature informs you what types of real estate and what criteria are of interest to investors and banks.

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October 2013 | Refurbishment: Always a new adventure

Weeds are growing out of the cracks in the concrete stairs, the doors are nailed shut and pigeons coo on the ledges – a building doesn't always have to be in such a state to require refurbishment. When real estate has reached its limit there will be new chances for project developers. What has to be considered, you can read in our feature.

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December 2012 | Office of the future

You can also find out what is already being demanded today of the offices of the future and how we develop user-oriented, attractive working worlds in light of these requirements.

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December 2012 | Tenant‘ wishes create individual working worlds

As you like it: In designing office real estate, project developers have to anticipate what is important to the future tenants. This does not always happen with the effortlessness of Shakespeare's comedy. Find out here how, nonetheless or perhaps precisely because of that, tenant wishes are turned into attractive and individual working worlds.

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