INVESTMENT MARKETS ENTER A NEW DIMENSION
A good €73.4 billion was invested in commercial properties throughout Germany in 2019. This put last year’s record investment volume in the shade (+19 %). In the final quarter in particular, the market’s dynamic performance again surpassed all expectations. A positive trend for both individual and portfolio transactions contributed to the record result.
OFFICE PROPERTIES THE UNCHALLENGED LEADERS
The dominance of office properties has been further reinforced. They contribute more than half towards the total transaction volume, with a share of just under 53 %. Individual deals claim a large share, with a good €29.4 billion marking a new all-time high. A total of 70 transactions were reported in the price range above €100 million.
Retail properties rank second, with a volume of almost €12.9 billion (+15 %).
Logistics properties amassed a good 10 % share, on around €7.5 billion. This represents the second-best result ever.
Hotels also achieved their all-time second-best performance, breaching the €5 billion threshold for only the second time, with a good €5 billion.
MAJOR DEALS ACCOUNT FOR SHARE OF JUST UNDER 60 %
- A share of 58 % marks the highest figure of the past ten years for sales over €100 million, in both relative and absolute terms.
- Foreign buyers claim a share of just under 41 % in the total transaction volume, thanks to a strong fourth quarter.
- €46.6 billion (+20 %) marks a new all-time high for the German A-locations. The €10 billion threshold was breached by two locations, with Berlin reporting €12.8 billion and Munich €10.7 billion.
FURTHER DECLINE IN YIELDS
- The net prime initial yields for office properties showed a further slight drop for all A-locations in the final quarter.
- A comparable, though slightly more dynamic trend was also observable on the logistics markets.
- Retail properties present a different picture: The sustained yield compression of recent years has evidently been brought to a halt for high street properties for the time being.