Empira Group

FondsForum Conference 2024 – Tracking Yield Developments in Europe and the USA – Reporting Directly from Miami   Rafael Aregger, Head of U.S. Investments at Empira Group LLC, highlights current trends in real estate returns, shedding light on key differences between the U.S. and DACH region markets, while offering a nuanced view of opportunities and challenges in these markets. Economic Dynamics – U.S. vs. DACH Region: Compared to the DACH region, the U.S. economy continues to experience stronger growth, driven by robust population increases and immigration-friendly policies that keep demand for residential real estate on the rise. These demographic factors provide sustained support for demand and investor confidence in the U.S. real estate market. Stable Cap Rates and Investor Confidence: Despite significant interest rate fluctuations in recent years, cap rates in the U.S. real estate market have remained largely stable, indicating strong investor confidence in the long-term outlook despite high financing costs. This stability is particularly evident in the multi-family sector, highlighting continued demand for housing. Challenges with Low Interest Rate to Cap Rate Spreads: Currently, the narrow spread between interest rates and cap rates makes achieving positive leverage challenging. Investors are increasingly relying on rent growth to secure returns, particularly in high-growth markets. Sunbelt Growth: The southern U.S., especially Florida and Texas, is experiencing high migration rates, leading to strong real estate demand and impressive rent growth. These regions also offer landlords additional advantages, such as favorable regulations with no rent caps. Optimistic Future Outlook: The outlook for the U.S. real estate market remains positive, bolstered by a stable economy and supportive conditions in sectors like residential and industrial real estate. With the Fed's shift in monetary policy potentially signaling lower interest rates, property values and rental growth could further boost market momentum. However, it’s essential to monitor the impact of anticipated federal debt levels on this growth under the current and future administration. Judith Schmidt, Senior Business Development Manager and Christian Hanke, Managing Director, are on site to connect with you and provide firsthand insights into Empira Groups’s latest market assessments, offering a unique perspective on investment opportunities and strategies amidst evolving yield dynamics.

Proud beyond borders: Our project THE SOURCE has been honored with the prestigious Global Human Settlements Awards at the 19th Annual Session of the Global Forum on Human Settlements (GFHS 2024), held at the United Nations headquarters in New York City on October 24, 2024.   The award in the category Planning and Design, accepted by the renowned architectural team HENN, highlights THE SOURCE as a model of sustainable urban innovation and design. This year’s forum, centered on "Invigorate Innovation and Local Leadership for a Sustainable Urban Future," provided a fitting backdrop for THE SOURCE, which embodies our commitment to creating resilient, forward-thinking spaces that enrich communities and champion environmental stewardship. The Annual Session of Global Forum on Human Settlements is one of the most important conferences worldwide focusing on sustainable cities and human settlements and has been hosted at the United Nations headquarters and on five continents for 19 consecutive years. This is the fourth time that the annual meeting has been held in New York. We are immensely proud to receive this recognition and grateful to everyone involved in bringing THE SOURCE to life! This award fuels our mission to continue pioneering sustainable urban development.

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