German real estate investment volumes came to slightly more than €9.7 bn during the first quarter of 2015, matching levels in the same period last year, Colliers International has reported.
German real estate investment volumes came to slightly more than €9.7 bn during the first quarter of 2015, matching levels in the same period last year, Colliers International has reported.
About €3.2 bn, or one-third of the total capital invested, was poured into real estate portfolios. Five shopping malls, Boulevard Berlin, Centrum Galerie Dresden, Forum Duisburg, Königsgalerie Duisburg and Arneken Galerie Hildesheim, with a combined value of €1 bn, accounted for the largest share of the transaction volume, Colliers found.
The five malls were purchased by French shopping mall investor Klépierre, a new entrant in the German market, as part of its acquisition of Dutch competitor Corio.
Ignaz Trombello, head of investment at Colliers International Germany, said: 'In Europe, Germany is the most important real estate investment market following the UK. Compared to other countries, Germany boasts an excellent mix of prime real estate locations and attractive secondary locations. And supply in the different property and price categories remains high despite the scarcity in core asset classes. This is an important aspect for investors from Germany and abroad when it comes to deciding to buy property in Germany as opposed to other countries.
'The German investment market is currently benefitting from Germany’s economic prowess and, in particular, from the upward trend on the leasing markets. Another plus point is that in an international comparison Germany partially still offers higher potential yields than Asian metropolises, for example,' Trombello said.
Some €4.1 bn - or more than 42% - of the total capital invested in Q1 came from investors outside of Germany. Colliers expects the share of cross-border investment to grow further, given the number of existing and new foreign players coming into the market.
French investors were the biggest source of capital in the German commercial real estate market, reflecting the takeover by Klépierre of shopping centre investor Corio. Investors from the UK invested slightly more than €1 bn and investors from the US slightly less than €600 mln. Asian investors ploughed roughly €560 mln into the German commercial market.
