A strong finish to the year lifted the residential portfolio market to a five-year high. Investment totalled €13.83bn, which represented a 35% increase on the previous year.
Faced with a diminishing supply of larger portfolios (> 10,000 units), investors increasingly shifted their attention to portfolios of 1,000 units and above. Transactions of this size rose by 43% to 40 deals while the overall number of transactions increased by 17%. Consequently, the average portfolio size fell slightly to 1,150 units.
For the last two years, German investors have accounted for around three quarters of the transaction volume, the primary reason being the large equity resources. Against this background domestic investors were especially able to secure the largest portfolios for themselves.
For 2014, we expect the transaction volume to fall slightly for reasons including a lack of large transactions owing to a shortage of supply. Nevertheless, high demand is likely to ensure that 2014 is still an above-average year.
Source : Savills