A research produced by
The German investment market continues to be characterised by massive surplus demand, which is most pronounced in the core
segment. When prime properties change hands, this means that there are always numerous bidders left out in the cold that cannot invest their capital in the market.
Consequently, even highly risk-averse investors have been increasingly “softening” their investment criteria. More and more requirement profiles now include B cities and secondary locations,bfor instance, in addition to prime locations in A cities.
The increasing popularity of ABBA strategies, i.e. investing in B locations in A cities or A locations in B cities, is also inevitably resulting in greater surplus demand and compression of initial yields in B cities and secondary locations. Furthermore, yields are reaching new lows across all markets.
Source : Savills
