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Germany Residential Investment Market - Q1 2016

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Germany Residential Investment Market - Q1 2016

Investment in sizeable stocks of residential properties (upwards of 30 residential units) in the first quarter of 2016 totalled 2.26 bn € and was thus well below the record level set in the same period last year. However, that result cannot be taken as a yardstick, since it was shaped decisively by Deutsche Annington's acquisition of Gagfah. But even leaving that transaction out of consideration, investment was still over one quarter lower than in the first three months of 2015. This is definitely due to the lack of large-volume packages, something which has appreciably cut back investment turnover, especially in the triple-digit million range. The shortage of products prevents the strong demand – which certainly extends to the top market segment, too – from being met fully, and this holds back the overall scale of investment. The situation in the size classes up to 100 m € is somewhat different. Turnover there in the first three months came to just over 1.7 bn €, which was 26 % more than in the prior-year period and also the best result in this segment in the past seven years. That impressively highlights the fundamental buoyancy of the market. Altogether, the survey covered more than 70 deals involving a total of just under 23,000 residential units. The average price per sale was around 31 m €. 

Source : BNP Paribas Real Estate 

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