Equipment leasing in Germany and Europe remains on the growth path

According to the recent Ifo Investment Survey in Leasing, new business for equipment leasing increased by 2.1% in 2003 and by about 5% in 2004. Real estate leasing, however, declined by 16% in 2003 and by a fifth in 2004. Despite this negative trend in real-estate leasing, the leasing industry managed to increase its market share on the whole: The leasing ratio increased in 2003 to 18%, and to 18.6% in 2004. The equipment leasing quota reached a record level, climbing from 22.8 % to 24.2 %. In total, new business in leasing amounted to € 46.6 billion in 2003. For 2004 an increase of 1% to €47.1 billion is expected. Backed by the expected recovery in equipment investment in 2005, and especially by improved sales of automobiles, the leasing companies will remain on the growth path. As in the previous years, growth will be borne only by the equipment sector. Real-estate leasing will continue to decline noticeably in 2005 because of the slump in construction and also because of minimum taxation.