Economic and financial conditions resulted in new highs in Germany's commercial investment market. Overall, more than €30.4bn (+20%) was invested in 2013; the highest volume since 2007.
Investment in office property registered the largest gain (+61%), totalling approximately €13.3bn and accounting for 44% of overall volume. Retail property saw investment of almost €10bn (+1%), equating to some 33% of all transactions.
Faced with increasingly rare and expensive core properties, risk-averse purchasers are developing alternative investment strategies. These include a flight to secondary locations which, in turn, is opening up exit opportunities for value-add investors.
For the current year, prevailing conditions promise a similar performance with continued high demand and a transaction volume over €30bn yet again.
Source : Savills