Germany is seen as a safe haven for global capital. Demand for real estate on the increase gives reason to expect further high transaction volume in 2017.
Employment numbers in the service sector continue to increase, resulting in record office letting take-up volumes in 2016. Above all, in the top cities modern office space is in short supply and is driving a further rise in rental prices.
For many years, the retail investment market has been characterised by unwavering strong demand and a decreasing availability of product. As a result, investor focus is shifting increasingly to alternative investment opportunities.
Thanks to the continued robust fundamentals, the initial signs for 2017 are positive for both the logistics letting and investment markets.
There is an upswing in Germany’s hotel sector thanks to the solid economic growth and rise in the numbers of guest overnight stays.
Institutional investors are increasingly focussing on healthcare, which is a highly cyclical but fast-growing investment niche, but requires detailed market knowledge because of the statutory legislation involved.
The German residential market is becoming increasingly popular among national and international investors. The action scope of investors is expanding on second tier cities, project developments and the student housing Segment.
Office investment market off to a very strong start to 2017
Office real estate remains the uncontestably strongest asset class with 45% of the overall volume at the German commercial real estate investment market; the five-year average for a starting quarter was exceeded by almost 50%
75% of the entire office investment volume goes to Top 7 locations
Stable foundation for office investment due to the very robust economic development, of which the office letting markets are reaping the benefits thus secure long-term cash flows
International investors show greater investment dynamics again – at €2.1bn, their investment volume almost doubles in a year-on-year comparison
The prime yields for first rate office properties continued to decline in the first quarter; the average prime yield for the Top 5 locations currently stands at 3.49%