Mark Ruhsam about the Overheating of Real Estate Markets

As part of the 7th Experts Forum hosted by the affiliate company RegioPlan Consulting, Mark Ruhsam gave a speech on the topic “Overheating of the Markets: Parameters for Estimating the Markets Realistically”.

You can download the complete presentation in the RegioData customer zone here. Furthermore you can find an interview on this lecture and the event here (only available in German).

The core of this presentation was to illustrate the relations and mechanisms of “overheating”. Mark Ruhsam: “Overheating is a widening gap between supply and demand. Development is happening and introduced onto the market although the underlying need is not rising. An example therefore was shown on the CEE Real Estate Markets between 2005 and 2008 – the result is well known”.

Based on some significant examples from Austria, CEE, Switzerland and Turkey, RegioData made specific data available, especially for Retail Real Estate.

“To recognize the signals of overheating is no witchcraft”, Mark Ruhsam says. But the crucial question is this: What can be done with the received information? On the last slide he used a picture of a flock of sheep as a symbol for the market development, that tends to just follow the herd. For the players in the market RegioData offers long time series for relevant data for all asset classes.

“Long time series are a must-have for recognizing overheating signals. I recommend to use less key performance indicators, but to observe them carefully.”

Mark Ruhsams lecture can be found in the RegioData customer zone. An interview can be watched here (only available in German)