Germany Investor Intentions Survey 2023

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This year’s survey provides several key insights:

  • Buying and selling expectations are expected to remain stable in 2023. Almost 60% of German respondents expect to either buy/sell more or maintain the same level of purchasing  and selling activity they had in 2022
  • Capital allocation to real estate is also expected to remain stable, including institutional investors with the largest AUM profiles. Value-add is the most preferred investment strategy in 2023, but core, opportunistic, distressed and NPL strategies may garner significant interest in the upcoming year
  • While office remains the most sought-after sector amongst German investors, industrial & logistics continues to close the gap
  • German investors remain loyal to their home market, while cross-border investors are now expected the U.K. as the strongest performing country in 2023 ahead of Germany. Southern Europe was also well represented in both our top performing country and preferred city rankings. London, Paris, and Amsterdam were Europe’s top-three most attractive markets.  Spain and Germany were the only two countries with more than one city in the top ten
  • Mismatch in buyer and selling expectations, fear of recession, and tighter lending conditions are viewed as the largest challenges to the current investment market
  • Downward pressure on pricing is expected to ensue across all asset classes. German investors expect the deepest discounts to occur in value-add office and retail 
  • ESG criteria adoption remains strong despite a challenging macroeconomic and geo-political landscape
  • The current geo-political and macroeconomic landscape will weigh on investment volumes through 2023. According to CBRE’s current house view a transaction volume of up to €55 billion can be expected for 2023, of which a good 25% could be accounted for by the residential sector