Empira Group

Empira Research – Q4 Outlook on Economy & Real Estate: Ongoing Stabilization in the German Residential Investment Market   Our quarterly analysis shows signs of stabilization emerging in the German residential investment market, with investment volumes reaching €5.9 billion in portfolios of 30+ units during the first three quarters of 2024—a notable 50% increase from the previous year.   ▶️ Almost All German A-Location Markets Exceed Rental Price Index The rent index for German locations has risen by 2.2% over the past 12 months. The demand-supply imbalance continues to push rental prices up in major cities, most notably in Frankfurt (+5.1%) and Hamburg (+4.2%). While purchase prices declined in several cities like Hamburg and Cologne, stability persists in Berlin, Munich, and Stuttgart.   ▶️ Interest Rates and Market Dynamics Germany’s 2024 growth forecast of +0.3% was revised to a -0.2% decline in the autumn projection. In contrast, the USA is the frontrunner among western industrialized nations, with forecasted growth of 2.5%.   “While the German economy shows signs of stagnation, early positive trends are emerging in the real estate sector. Data points to price stabilization and growing demand for real estate,” commented Prof. Dr. habil. Steffen Metzner MRICS, author of the study and Head of Research at the Empira Group. Read the full report to explore our insights on navigating this dynamic market. ⬇️

Webinar Recap: EMPIRA Transition-to-Green Strategy for Residential Properties This week, we had the pleasure of presenting our EMPIRA Transition-to-Green Strategy for Residential Properties, featuring insights from our expert panelists: Judith Schmidt (Senior Business Developer), Prof. Dr. habil. Steffen Metzner MRICS (Head of Research), Christopher Collo (ESG-Officer), and Ralf Morisse (Head of Transactions).   Key takeaways included: • Housing Shortage & Market Pressure: Germany's top cities, including Berlin, Hamburg, and Stuttgart, are facing significant housing shortages due to inadequate new construction and rising prices. The vacancy rate is historically low, with cities like Munich recording just 1%. • Non-ESG-Compliant Asset Risks: Buildings constructed before the 2000s, many of which are post-war constructions, face becoming stranded assets as they were not built with today's environmental and energy efficiency standards in mind. The risk of value loss for non-ESG-compliant assets is growing, making renovation and revitalization crucial. • Energy-Efficient Real Estate & Net Zero by 2050: We discussed how the "Net Zero Carbon Ready Buildings" target for 2050 aligns with the European Green Deal and Fit-for-55 regulations. By 2030, all new residential buildings must be designed to optimize solar energy generation potential. Investments in energy-efficient renovations (KfW 40 or better) and e-mobility infrastructure are critical for the future. • Circular Economy & ESG Strategy: Transitioning to a circular economy with a focus on sustainable renovations and e-mobility infrastructure, such as charging stations and bicycle stations, was highlighted. This helps reduce CO2-related landlord costs while ensuring the long-term viability of residential properties. • Market Returns for ESG-Compliant Assets: Non-ESG-compliant properties carry a high risk of value erosion, but strategic investments to refurbish these assets can reposition them to align with ESG standards, driving sustainable value growth. Recovery in the real estate cycle further supports this value creation. Our strategy not only supports the decarbonization goals of Fit-for-55, aiming for a 55% reduction in emissions by 2030, but also unlocks market opportunities for ESG-compliant assets. It was a fantastic event, and we are excited to have you with us on the next session

Reflecting on Expo Real 2024: Looking to the Future with Optimism At Expo Real 2024 in Munich, it was evident that while the real estate sector faces its share of challenges, there are also many reasons to be optimistic about the road ahead. Sustainability, digitalization, and innovative financing were key themes throughout the event, pointing to meaningful transformations that will shape the future of the industry. Despite the current economic environment, the potential for growth and innovation is clear. As urban spaces evolve and new technologies create opportunities for more resilient and efficient projects, the real estate market is adapting to meet these shifts. At Empira Group, we remain focused on sustainable investments. Our vertically integrated platform gives us a holistic view of every project’s value chain, ensuring seamless execution and efficiency from acquisition to completion. This approach helps us maintain high standards in both product and construction quality while staying flexible and committed to delivering long-term value in an ever-changing market.

EXPO REAL 2024 – That’s a wrap! On behalf of the entire Empira Group, we extend our heartfelt gratitude to all partners, clients, visitors, and the gracious hosts at EXPO REAL for making this year’s event exceptional! A special thank you goes out to our dedicated teams at Empira Group, whose expertise and commitment truly stood out during the event. Your hard work has made a significant impact. We are excited by the valuable interactions and connections forged and look forward to engaging with all of you soon. Until then, we remain inspired and motivated to continue delivering excellence in real estate!

Discover the Hidden Gems of “Nine West Living” Berlin: 19 Exclusively Furnished Apartments Within Berlin's Premier Development @nine-west-living.de offers 19 exquisitely designed, fully furnished apartments in the heart of this new development. These two-room apartments, ranging from 37-41 square meters, provide maximum comfort in a compact space, with rentals starting from a six-month period. Ideally located near major companies, these apartments are perfect for new employees or anyone in need of immediate, flexible housing. Smart design features include integrated storage, multifunctional living spaces, and fully equipped kitchens with modern appliances, including an oven, refrigerator with freezer, dishwasher, and LED lighting, some with balcony. A luxurious, high-standard bed ensures maximum sleeping comfort. Designed by renowned interior designer Lidia Teister, each apartment exudes creative flair and sophistication, blending rich textures and patterns to create a vibrant yet relaxed atmosphere. The interior style is inspired by the natural surroundings of Falkensee near Berlin, reflecting the region’s landscape elements—expansive fields, forests, lakes, and a deep connection to nature. Dominated by materials like oak wood, pine, natural stone, and clay, the design also features a soothing color palette of soft greens, warm earth tones, sandy hues, and water blues, creating a harmonious link to the surrounding environment. If you’re searching for a stylish, fully equipped living space in Berlin, "Nine West Living" is the perfect fit. #EMPIRAGroup #realassets #housing #realestate #Berlin

EMPIRA GROUP AT EXPO REAL 2024 We can't wait to be once again at 𝐄𝐗𝐏𝐎 𝐑𝐄𝐀𝐋 (𝐌𝐞𝐬𝐬𝐞 𝐌ü𝐧𝐜𝐡𝐞𝐧) with our team of experts from Empira Group. We're excited to reconnect with everyone face-to-face for insightful conversations. Come find us at our booth located in Hall A2.412. If you'd like to book a meeting with us in advance, feel free to reach out before EXPO REAL to schedule a time with one of our specialists. Looking forward to seeing you there! #Empira #München #RealEstate #Investments #Germany #ExpoReal #Munich #ExpoReal2024

South Florida: Join Empira Group at the Bisnow Miami State of the Market event on September 25th as industry leaders gather to discuss current and future development activity in one of the top US cities for real estate investment. Rafael Aregger, Head of Investments US, will share insights on navigating the current financial landscape, weigh in on the Federal Reserve’s latest interest rate cut and explore opportunities for the multifamily sector. Hear about creative financing structures, leading developments, residential and economic outlooks, and more. We look forward to seeing you there! #EmpiraGroup #Miami #RealEstate #Investment

Empira Group Research Reveals: European investors are increasingly focusing on the US Sun Belt region due to its rapid growth and attractive investment opportunities. Our latest study explores the key factors making the Sun Belt appealing, including its strong economic and demographic trends compared to the DACH region. It highlights cities with the best investment potential, analyzes property prices and rental yields, and outlines the taxation and regulatory conditions to consider. Key findings:   • Above-average rental growth: Sun Belt cities like Tampa and Phoenix have seen rent increases of up to 64%, far exceeding the national average. • Affordability gap: Rising home prices are making homeownership less attainable, boosting demand for rental properties. • Undersupply of rental units: Insufficient construction activity in multifamily housing has not kept up with population growth, creating opportunities for investors. • Attractive investment environment: Favorable tax conditions and moderate property charges make the Sun Belt appealing for institutional investors. • Develop-and-hold strategy: A proven approach for generating long-term, steady rental income and value appreciation in the Sun Belt.   The study provides a comprehensive analysis to help European investors make informed, strategic decisions in this dynamic market. #realestate #sunbelt #investment #research #EMPIRA

“My Tegel” Berlin - Completion Ahead of Schedule! We’re thrilled to announce the successful completion and handover of My Tegel in Berlin—delivered ahead of schedule! As of September 10, 2024, the entire district development is officially complete. Following the earlier handover of residential units in April and the daycare center in July, the underground garage with 125 parking spaces and all outdoor areas are now fully operational and ready for use. At the heart of My Tegel is a commitment to sustainability. The development adheres to the KfW 55ee energy efficiency standard and has achieved LEED Gold and WiredScore Gold certifications for parts of the project. A huge thank you to the entire team for completing the project on time, within budget, and three weeks ahead of schedule! #Sustainability #GreenBuilding #LEEDGold #WiredScoreGold #Innovation #KfW55 #ProjectManagement

Cologne Construction Industry Evening 2024 at "Die Welle Köln" This year’s Cologne Construction Industry event was held at the site of our project development, "Die Welle Köln." In the southern part of Cologne, 752 apartments are currently under construction on the former Deutsche Welle site. The evening began with a brief welcome from Dr. Ralph Elster, Deputy Mayor of Cologne, and Mr. Linnartz, Branch Manager of the general contractor MBN. Christoph Keilbar, Project Manager for Die Welle Köln at Empira Group, and Peter Berner from ASTOC ARCHITECTS AND PLANNERS then presented and updated on the progress of this new urban district. During a guided tour of the construction site, attendees were able to see the new buildings firsthand, including the underground parking, residential units, and rooftop terrace. The evening concluded with a barbecue, offering guests the opportunity to exchange ideas and reflect on the project. #EmpiraGroup #Cologne #Residential #Development #RealEstate