All property markets in Germany are experiencing renewed confidence as a positive investment climate exists despite the global economic downturn, according to the latest King Sturge Real Estate Economy Index.

The office real estate sector is performing best, registering up the highest increase in confidence for a third month in a row, up by 12.6% to 43.2 points. The residential sector is also continuing to push upwards with confidence increasing beyond 100 points at 116.2. The majority of real estate agents are now describing the current situation and the outlook for the housing market as positive.

The retail sector jumped 5.4% in July, rising to 61.3 points. Overall, the poll-based Real Estate Climate rose for the eighth time in as many months, climbing by 7.5% from 58.9 up to 63.3 index points.

While the Real Estate Climate has mapped the improved environmental conditions, the development of the Real Estate Economic Situation suggests that the real estate economy still has to wait for a sustainable shift in trend. Accordingly, a majority of the survey respondents remains sceptical in regard to a swift recovery of the non-monetary economy.