Commercial real estate in Germany is successfully luring real estate investors back to the market. Property consultancy Savills revealed that EUR 5.53 billion of commercial property changed hands in Germany in the first three months of 2011.
Retail transactions accounted for 55 per cent of the total transaction volumes and 65 per cent of total portfolio deals, the firm noted. Total retail deals in the quarter were up 12 per cent from the same period of 2010.
Lars-Oliver Breuer, head of investment at Savills Germany, said: "During 2011 we expect the total investment volume to exceed the 2010 total of EUR 19.7 billion, possibly reaching EUR 20 billion."
According to market analysts, buoyant banking conditions, rapid growth in the German economy and strong performance of the investment market make the country an ideal destination for international investors to partake in commercial property investment.
Globally, commercial markets are beginning to pick up. RICS Global Commercial Property Survey for the first quarter has revealed that many investors appear increasingly bullish towards market prospects.