Commercial property changed hands for a total of more than €12bn in the first quarter of the year (Table 1+2). This represents the strongest start to a year of all time.
The continued high demand is now meeting with increasing supply. Following unprecedented initial yield compression in recent years, it appears increasingly attractive for owners to sell.
This increasing willingness to sell, combined with the even greater attractiveness of Germany from an international investors’ perspective, is likely to ensure that investment activity remains high for the remainder of the year. We currently expect a transaction volume of approximately €55bn for 2017 but it is also possible that the total will exceed €60bn.
Source : Savills