Savills predicts that the German residential portfolios market is on track to reach a total turnover of EUR 10 bn in 2012, with EUR 6.13 bn already invested in the first six months of the year.
Savills predicts that the German residential portfolios market is on track to reach a total turnover of EUR 10 bn in 2012, with EUR 6.13 bn already invested in the first six months of the year.
The International real estate advisor's data shows that the H1 2012 total is the highest in five years and marks a 75% rise on H1 2011, when the investment volume reached EUR 3.5 bn.
The number of transacted units almost doubled in the first half of 2012 compared to the same period last year, rising from 64,266 to 119,500 units, according to Savills data.
This is primarily due to four large-volume transactions comprising over 20,000 units each (LBBW, DKB, Baubecon and Speymill). These deals accounted for almost three quarters of the total number of units transacted and the total transaction volume in this period. Overall Savills notes that the number of portfolio deals decreased in H1 2012 compared with the same period in 2011, from 91 to 60, primarily due to a lack of new supply.
German buyers dominated the residential portfolios investment market in H1 2012, accounting for circa 80% of investment activity, similar to Q1 2012 and H1 2011. Listed property companies and REITs were by far the most active buyers with a 43% share of the transaction volume during the first six months of the year. Insurance companies and pension funds as well as private equity funds followed with a share of 26% and 18%, respectively.
Continuing a trend of the past 18 months Berlin dominated investment activity with over 26,000 residential units sold in the city and its surrounding region in the first half of 2012, corresponding to a share of over 22% of the total number of units transacted. Stuttgart and Hamburg follow with a share of 6.2% and 3.5% respectively.
