INVESTMENT VOLUME OVER €10 BN DESPITE LOCKDOWN
The beginning of the year confirmed investors‘ great confidence in the German commercial real estate markets. The transaction volume of a good €10.2 billion is on a par with the ten-year average. The fact that it is well below the all-time high set in the Q1 2020 is unsurprising, given the large portfolio deals that were closed in last year, including the TLG acquisition. The main reason for the current good performance is that the economy is doing well in the ongoing lockdown and corporate confidence is increasing despite a vaccination campaign that is only slowly gaining momentum. This is reflected, among other things, in the ifo index, which in March reached its highest level since June 2019. The improved situation in terms of outstanding orders shows that a large part of the German economy has adapted to the current conditions. With lockdown easing likely to start in the short-term, the confident mood should gain further momentum.
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