The transaction volume in both the commercial and residential property markets fell by doubledigit percentages in the first quarter of 2016 compared to the corresponding period last year (Table 1+5). This decline is in stark contrast to the change in demand levels. Never, in our estimation, has there been so much capital waiting to be invested in German property than at present.
However, a general reference to the (excessively) scare supply is insufficient as an explanation for the decline in transaction volume. This is apparent when looking at the investment statistics from previous years. Although supply was becoming consistently scarcer, the transaction volume rose every year since 2009. The increasing supply shortage translated into rising prices, which in turn caused more and more owners to sell their properties.
Source : Savills