German investors second largest in european commercial property

Commercial real estate investors from Germany remain significant players in the European property market, but are increasingly focusing on their home market, according to the latest data from CB Richard Ellis (CBRE).

Germans were the second largest players in the European property investment market in the first half of 2011, accounting for 16% of total real estate investment activity in Europe. However, German investors have become far more focused on the strong economic fundamentals and resulting opportunities in their home country, rather than cross-border markets.

Many investors consider Germany’s property investment market as stable and prosperous and are therefore increasingly targeting this market, according to the report. Nine of the 10 largest deals by German property investors took place in Germany in the first half of 2011, composed primarily of office and retail deals.

Mirroring investors’ preferences for prime German assets, the maximum loan size in Germany doubled to €200 million in a single quarter, with competition between lenders to finance prime transactions in this core market allowing Germany to defy the trend of tightening lending conditions that has been spreading across Europe.

Source: PropertyWire.com