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Home»Travel»German commercial real estate market

German commercial real estate market

December 14, 2018

Today the German commercial real estate market is at peak today. However, how promising are investments in such objects? To do this, consider the situation on the market. The main drivers of the German commercial real estate market are fairly stable basic macroeconomic indicators and interest rates, which have been at a low level in the past few years. This provides an influx of investment in Germany – only in 2014 it amounted to about 39.8 billion. euro, which is 27% more than in 2013. Particularly noteworthy was growth in the fourth quarter. Moreover, more than half of the total number of commercial real estate objects acquired in Germany are currently falling on foreign investors. The share of real estate belonging to investors from Asia is increasing at the highest pace. According to analysts, this trend will remain in 2015. According to the same forecasts, the volume of transactions with commercial real estate in this country may exceed 40 billion. dollars. Another interesting point is not so much an increase in the volume of investments as more differentiated by the previous years of market activity. This is especially noticeable in the regional distribution of transactions, in changes in the structure of various sectors, in the structure of sellers and buyers. So, according to some studies, in 2015, 45 % of the total volume of real estate transactions was accounted for in 2015. There were few objects for sale in the retail sector, and this reduced the number of transactions concluded. As for shopping centers, in this segment of the peak of activity came in 2009-2011, and since then the volumes have been steadily reduced. So, in 2014, investors invested only 1.6 billion in them. Euro. However, this does not indicate a fall in demand, but about a lack of proposals. While many other sectors really suffer from excessive demand. This is especially true for premium assets, that is, objects in the most prestigious business areas of large German cities. Experts recommend paying attention to such assets, although they are characterized by a higher degree of risk.

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