Executive Summary
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
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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.
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Retail properties rank second, with a volume of almost €12.9 billion (+15 %).
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Logistics properties amassed a good 10 % share, on around €7.5 billion. This represents the second-best result ever.
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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.