This research unit is concerned with the macroeconomic importance of financial and property markets. Our economists analyse the development of the financial markets, monetary policy and the markets for real estate. They examine the latest proposals for legislation and conduct studies for companies, business associations and ministries, focusing on the links between financial markets, real estate markets, and the economy as a whole. The potential consequences of this interdependence were well exemplified by the recent global financial and economic crisis, which started in the American real estate market. In addition, the unit addresses the structural challenges facing the property sector, including an ageing and shrinking population, climate change and corporate financing. Immobilien-Monitor, the quarterly bulletin which reports on activities in the field of real estate economics, is available by email and by download from this website. Further information is available online at finanz-und-immobilienmaerkte.de. Several topics of the research unit intersect with topics in taxation, business cycles or social issues, why we often collaborate with other units of the institute. Although many topics focus on Germany, there is a strong connection to European policy-making, especially in the fields of financial regulation and monetary policy. Furthermore, most of the research is also applicable to other EU member states.
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Sections of the Research Unit
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The provision of housing is a social need. We analyse the effects of state interventions on the housing market and contribute to the debate on sound designs of housing regulations. Topics are rental regulations, the set-up of housing allowances, tax rules related to housing and incentives to stimulate energy efficient renovations.
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The focus here is on the re-regulation of financial markets, in particular the implementation of the Basel III framework and the establishment of the banking union in Europe. The researchers monitor and evaluate monetary policy and analyze economic activity and inflation trends on the basis of the findings. One question is to what extent low interest rates are caused by regulations and, together with inflation, lead to a redistribution between creditors and debtors.
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The availability of funding for investments is essential to economic growth, while the regulatory environment is crucial for the way in which real estate investments and enterprises are financed. Due to new financial regulations, like Basel III or Solvency II, the framework for corporate and real estate financing will change. We analyse their effects on markets thoroughly and derive suggestions for improvement, if necessary.
Pekka Sagner / Michael Voigtländer in International Journal of Housing Policy
On 23 February 2020, the Berlin Senate introduced the Berlin rent freeze (‘Mietendeckel’). The law was repealed on 25 March 2021. The Berlin rent freeze was an unprecedented market intervention in the German housing market.
Pekka Sagner / Michael Voigtländer in International Journal of Housing Policy IW
An Analysis of the Current Risk Levels in Residential Real Estate Financing in Germany
Michael Voigtländer / Jonas Zdrzalek
The German Federal Financial Supervisory Authority (BaFin) is keeping a watchful eye on the granting of housing mortgages and from 2023 on will require lending banks to increase their equity capital to cover potential risks.
How Large Is the Risk of Stagflation in the Eurozone
Markus Demary / Michael Hüther in Intereconomics
The rapid recovery of demand combined with supply constraints has led to rising prices during the past months. This is evident in oil and gas markets, but also in international trade, which has been thrown out of step by bottlenecks at Asian ports.
Markus Demary / Michael Hüther in Intereconomics IW
A Hedonic Rental Price Index for Retail Properties in Germany
Christian Oberst / Michael Voigtländer
Despite their importance for users, investors and urban development, there is no appropriate monitoring of rent prices for retail properties in Germany. Comparing average rents alone is of limited benefit as the composition of location and quality properties of observed retail objects could differ significantly.
IW-Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur
In the course of 2021 Germany’s economic recovery has once again perceptibly lost momentum. After the strain brought about at the beginning of the year by the lockdown for the second and third waves of the Covid19 pandemic, manufacturing and construction companies are now struggling with a shortage of materials, while higher prices for fossil fuels are imposing an additional burden.
IW-Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur IW
How the Berlin Rent Cap Affected Private Landlords
Pekka Sagner / Michael Voigtländer
The effects of the Berlin rent cap on the city’s housing market were wide-reaching, with the supply of rental accommodation falling by more than half while the cap was in force.
Global Inflation: Low for Long or Higher for Longer?
Markus Demary / Michael Hüther
Inflation has started to increase, and the return of inflation comes at a time in which economies begin to recover from pandemic-induced and lockdown-induced recessions. This raises questions about how much and how long inflation will go up as well as about whether central banks have to step-up against inflation at the cost of slowing down the economic recovery. Has “low for long” turned into “higher for longer”?
Many Asian start-up companies have specialized in blockchain technology. In particular, Hong Kong, Israel and Singapore have the highest blockchain company density in Asia. The determinants for a flour-ishing blockchain ecosystem are a business-friendly environment for start-ups and the availability of venture capital, while the effects of agglomeration are less pronounced in Asia than in Europe.
Blockchain companies have sprung up all over Europe, at the forefront: Malta and Estonia. Compared to the sizes of their workforce, both countries have an outstanding number of blockchain companies and can easily compete with larger countries like Germany or France. The reason for this is a combination of having agglomerations, a good access to venture capital and an attractive framework for new companies.
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