Germany continues to draw strong international interest

Interest in German commercial real estate remains high among both German and international investors with retail property a top favourite, according to a report from Colliers International.

'Total transaction volume up to the end of the third quarter came to just under EUR 16.8 bn, more than 27% above the previous year’s result,' said Andreas Trumpp, head of Research at Colliers International in Germany. 'The quarterly results have been very balanced thus far, fluctuating between EUR 5.4 bn and 5.7 bn,' he added.

Prime yields for first-class office properties are holding steady when compared with the previous quarter, with the exception of Stuttgart, where a decline of 20 base points was noted, from 5.40% to 5.20%. Munich (4.50%) and Hamburg (4.70%) are the most expensive locations, followed by Berlin (5.00%), Frankfurt (5.20%), and Düsseldorf (5.25%).

About 31% of the transaction volume registered between January and September (EUR 5.2 bn) came from portfolio sales. International investors invested some EUR 6.6 bn in Germany during this period, making them responsible for about 40% of the investment volume. About EUR 7 bn, or about 42% of the transaction volume, was registered in the country’s six top locations: Berlin, Düsseldorf, Frankfurt, Hamburg, Munich, and Stuttgart.

Source: PropertyEU.info