This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

German Real Estate Performing Well Despite Yearly Investment Drop

First name: 

 

Last name: 

 

Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category

Archives



Europe  Germany  retail properties  Hamburg  Frankfurt  Munich  Savills  Berlin  German Property Market  Matthias Pink  Cologne  Marcus Lemli 

German Real Estate Performing Well Despite Yearly Investment Drop

By - Wednesday 24 October 2012

German property investment totalled 5.3 billion Euros in Q3 this year according to the latest data from Savills, making it the best performing quarter of the year and taking us to 14.4 billion Euros for the first 9 months of the year. This is down 13.1% compared to last year, but Savills expects that the final quarter will make up for this, predicting a year end total of 20 billion.

Marcus Lemli, CEO of Savills Germany and Head of European investment, said: "We have seen a real increase in activity over the last quarter, which has been dominated by our domestic investors who have accounted for 67% of transactions. In fact, the growth in investor appetite is such that it is only due to a lack of quality supply that the transaction volume was not even higher."

According to the report domestic buyers continued to dominate the German property market, but the number of investors from elsewhere in Europe is growing. According to the report European investors have accounted for 2.26 billion Euros worth of investments this year, which is 8% higher than last year.

Unsurprisingly the major cities dominate the report's location breakdown, with Berlin, Frankfurt, Hamburg, Cologne, Düsseldorf, and Munich accounting for around 46% of the investment. Berlin is top, with 1.8 billion Euros invested this year, but Munich recorded a 27% year on year growth in transactions.

However, investment volumes grew 18% across the rest of Germany, not withstanding a 19% decrease in the other key investment markets not mentioned above. This trend brought the following statements from Matthias Pink, head of research at Savills Germany: "Some investors have looked towards the economically strong regional markets due to there being a lack of prime product in the core cities. However, location remains fundamental in their criteria and is often prioritised over lease term and covenants."

On a sector by sector basis retail is still top-dog with 40% of the total volume being invested into retail properties. Offices picked up 29% of the investments, while the industrial sector had the lowest overall volume but did record a 90% growth on last year.

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here


Comments

 

*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.


«« Back to IPIN Live

Follow IPIN Global


Latest Content

Recent Comments

Powered by Disqus