Germany's residential market is booming. In the year to 15 November, 68 residential deals involving portfolios of 250 units and above traded hands, a jump of 66% on last year’s figure, according to figures from Cushman & Wakefield. Around 74,000 units were traded in the period with a combined value of EUR 3.9 bn, according to C&W.
Germany's residential market is booming. In the year to 15 November, 68 residential deals involving portfolios of 250 units and above traded hands, a jump of 66% on last year’s figure, according to figures from Cushman & Wakefield. Around 74,000 units were traded in the period with a combined value of EUR 3.9 bn, according to C&W.
'If another large sale goes through before the year-end, this figure could be pushed up to EUR 5.5 bn,' Matthias Franz, an associate in C&W’s capital markets group in Frankfurt, told PropertyEU. According to Malte Maurer, head of residential development at JLL in Germany, supply is significantly outstripping demand: 'There is more interest in residential portfolios because big institutional investors have got quite a lot of money and they prefer to invest it in larger portfolios if they can because it’s easier than buying a lot of single assets. I could sell 20 residential portfolios of between EUR 20 mln and EUR 70 mln right now if I had them,' he told PropertyEU.
Residential assets have caught the eye of investors due to their stability and good cash-flow, according to Franz of C&W. 'Both core investors and opportunistic investors are looking. Last year, a deal might have attracted five investors. Now, it could be more than 10 investors,' he said.
The full article appears in the December edition of PropertyEU Magazine. Click on the link below to subscribe.
