Refurbishments of commercial real estate and infrastructure for German corporates and for the public administration Germany will represent a market opportunity with a value of at least EUR 244 bn over the next five years, according to a new research reported issued by Germany's largest property group, IVG Immobilien.
Refurbishments of commercial real estate and infrastructure for German corporates and for the public administration Germany will represent a market opportunity with a value of at least EUR 244 bn over the next five years, according to a new research reported issued by Germany's largest property group, IVG Immobilien.
The report, which deals with the issue of pending refurbishment and replacement of corporate and public-sector properties, estimates that the public sector will offer the biggest potential, with around EUR 204 bn of redevelopment projects expected to be implemented by 2016.
'The potential for most real estate companies in the coming years lies in their expertise in asset management and their ability to reposition their portfolios,' said Thomas Beyerle, IVG's head analyst.
In recent years, the age and heavy utilisation of public administration buildings has increased dramatically and, in some cases, to a worrying extent - more so than the age of non-government buildings. This situation can provide a 'unique opportunity' for investors to take a strategic approach with replacement, new construction or other types of repositioning of buildings and infrastructure.
'Not least of all, current investor demand for B properties, meaning real estate requiring moderate refurbishment that can then be repositioned, will provide some short-term momentum,' added Beyerle.
