The German Federal Statistical Office reported the “strongest growth in private consumer spending since the year 2000” in mid-March. This increase in consumption is also benefiting the German retail sector. The revenue growth of 3.1% in 2015 represented the largest increase for 20 years.
The favourable environment for retail is also expected to persist in the medium term. Against this background, investment in German retail property appears extremely attractive.
While the transaction volume in the first quarter of 2016 fell by 40% compared with the corresponding quarter last year to €2.2bn, we consider this to be a blip rather than a reversal of the trend.
Source : Savills