Real Estate Cycles in Germany—Causes, Empirical Analysis and Recommendations for the Management Decision Process

Abstract

Unlike in the United States or the United Kingdom, research on real estate cycles in Germany exists only to a limited extent. Therefore, this article has three objectives: (1) to briefly introduce the unfamiliar reader to the theory of real estate cycles; (2) to empirically analyze the observable and quantifiable variables of the German office market and to make an attempt to validate the cyclical behavior of the German real estate market; and (3) to present recommendations for the management decision process based on theoretical causes and empirical analysis.