Germany is driving the recovery of Europe’s listed property sector, with 2015 on course to be the second record-breaking year in a row for real estate activity, according to research for the German property federation ZIA.

Germany is driving the recovery of Europe’s listed property sector, with 2015 on course to be the second record-breaking year in a row for real estate activity, according to research for the German property federation ZIA.

Market capitalisation for German listed property companies stood at €48 bn in mid-August, a 73% increase year on year, having briefly touched the all-time record of €50 bn earlier in the year.

Germany overtook the Netherlands to become Europe’s second largest listed market, behind the UK, and now accounts for 16% of the listed European sector. Vonovia, the company formed following Deutsche Annington’s acquisition of Gagfah, became the first property firm to be listed on the DAX30 index, while the country now counts five firms with a market cap of €2 bn or greater.

‘The significance of real estate in Germany is finally reflected in the listed sector as well,’ says Peter Barkow, managing director of Barkow Consulting, which carried out the research jointly with ZIA.

‘Vonovia’s DAX30 inclusion is a historic moment for the whole sector as no property company has ever been among the domestic group of 30 blue chips.’

Share prices of listed German firms outperformed the broader European market, with EPRA Germany achieving an increase of 31% year on year compared to 19% in the UK. Germany also saw record levels of equity issuance in the first half of 2015, with €4.7 bn of equity being placed in the markets, the same amount as in the whole of 2014, which was itself a record year.

ZIA and Barkow Consulting carried out a detailed study of 18 companies representing 82% of the German listed sector. The German Property Federation (ZIA) represents 37,000 branch members through individual firms and 25 member associations.