German resi deals set to rise over 25% to EUR 6b: Savills

Investment in German residential portfolios is expected to exceed EUR 6 bn this year, compared to a 2011 volume of EUR 4.8 bn, according to real estate agent Savills.

At nearly EUR 3 bn, the Q1 2012 investment volume total already amounts to roughly 60% of the 2011 full year investment volume. Around 35 residential packages comprising 56,000 units changed hands in Q1, with the largest deals including the sale of the DKB Immobilien package to TAG for EUR 960 mln and LBBW's portfolio of 21,000 units for EUR 1.4 bn.

'For the first time since 2007 residential packages of 10,000 units and more are being sold again to a significant extent. 2012 is set to be the year for big deals,' said Karsten Nemecek, Savills' managing director of Corporate Finance.

German buyers dominated the residential portfolio market in Q1 2012, accounting for 78% of total deals. In this regard, the current market activity differs from the situation seen in the years 2004 to 2007 when large packages were bought particularly by foreign investors.

Following the trend from 2011, residential packages in Berlin were particularly sought after in Q1 2012, when almost 6,000 units were sold, or 12% of the total number of units.