German property volumes rise 39% higher in H1

The pace of real estate investment picked up strongly in Germany during the first six months of 2013 and the trend is expected to continue.

In a new report, Colliers International said a total of €13 bn was invested in commercial real estate in Germany during the first half of 2013.

'The brisk activity on the market continued between April and June following an energetic start into the year. We recorded a transaction volume that was 39% higher compared to the same period of time last year,' said Ignaz Trombello, head of investment at Colliers International Germany. 'These results mean that both German and international investors continue to place more trust in the German market than in any other country in the EMEA region except for Great Britain,' he added.

Almost €3.5 bn, or 27%, of the capital invested throughout Germany came from international investors.

Colliers suggested that Commerzbank’s sale of the Frankfurt high-rise office complex, Gallileo, for more than €250 mln in Q2 to an IVG special fund set up for several South Korean institutional investors deserves special mention.

The volume of portfolio sales also totalled at around €3.5 bn at the end of the first half of the year. The Prime Portfolio sold at a volume of approx. €480 mln during the first quarter, making it the largest commercial transaction in Germany so far this year. The largest individual sale so far this year was the Kö-Bogen complex in Dusseldorf, which was sold to Art-Invest Real Estate for more than €400 mln. The Skyper office complex, which was bought by Allianz Real Estate in Q2 for over €300 mln, is also among the largest transactions of 2013.

Office properties were at the top of investors’ shopping lists during the first half of 2013 as well. Some €5.9 bn, or 45%, of the transaction volume throughout Germany was invested in office real estate.