Investment in German commercial property over the last year totalled around €25.3bn. This represents an increase of 9% on the previous year and the highest volume for five years.
Activity was primarily driven by foreign investors who accounted for €11.6bn; 60% more than in the previous year.
Investors from continental Europe were particularly active with a net investment of €1.7bn, making these the largest net purchasers, even ahead of German investors.
Regardless of their origin, equity-rich investors were almost exclusively on the purchaser side. These investors retained a clear focus on core assets, even if this term was somewhat stretched.
Prime yields therefore remained under pressure though hardened by just 5 to 10 basis points.
For 2013, we anticipate increasing activity in the value-add segment and a volume of over €20bn.
Source : Savills