Investment in commercial property in Germany totalled EUR 45 bn in the first three quarters of 2007, an increase of 52% percent on the same period last year. If residential portfolios and non-performing loans are also included in the investment total, the figure so far this year climbs to almost EUR 59 bn, according to an analysis by international property advisor Atisreal.
Investment in commercial property in Germany totalled EUR 45 bn in the first three quarters of 2007, an increase of 52% percent on the same period last year. If residential portfolios and non-performing loans are also included in the investment total, the figure so far this year climbs to almost EUR 59 bn, according to an analysis by international property advisor Atisreal.
'In the third quarter, investment turnover continued at a very high level - a sign that it is primarily the segment of mega-deals which has been affected by the turbulence in the financial markets. As an investment location, Germany remains highly attractive', said Piotr Bienkowski, managing director of Atisreal Germany. Of the total of EUR 45 bn invested in commercial property, single deals accounted for over EUR 18 bn (40%) and portfolio transactions for more than EUR 27 bn (60%).
'It is above all office investments which have benefited, in line with the positive development of office markets, with very good take-up levels, lower vacancy volumes and rising rents', Bienkowski said. Office buildings were well out in front, with a share of 52% (EUR 23.4 bn) of total turnover. In second place came retail properties, with a share of almost 25% (EUR 11 bn).
Following a fall in yields in the first half of 2007 to almost to the level found in the large European metropolises, the third quarter saw them rising again. 'The problems in the financial markets have led to changes in financing pledges and financing terms, but the market is beginning to adapt to these. There can be no talk of any slump in the investment market,' said Bienkowski.