Residential portfolio transactions in Germany exceed EUR 3b

The German market for residential portfolios picked up in 2009, with a significant number of portfolios actively transacted in the second half of the year compared to H2 2008, according to adviser Savills. In total, 107 residential portfolios worth an estimated EUR 3.2 bn and comprising a total of some 56,000 residential units changed hands last year. The figure is almost half the amount of 2008.

Overall 11 portfolios comprising in excess of 1,000 residential units each were traded, which adds up to over half of the total number of units sold in 2009. Matthias Pink of Savills Research said: 'Approximately 75% of the portfolios sold a total of less than 500 residential units each. This shift towards smaller-sized portfolios is due to a change in the buyer structure. In addition to private investors and public and private housing associations, the most active buyers were closed-end funds as well as special funds. Having bought six portfolios comprising a total of just below 1,600 units DeWAG Group played the most active part among the buyers. Meanwhile vendors included municipal housing associations, insurance companies and some listed property companies.'

Investors focused very clearly on high-quality stock and project developments in prospering metropolitan areas. This is also reflected in the weighted average price of approximately EUR 55,000 per unit which can be determined in those cases where the purchase price has been disclosed (44). 'This figure does not, however, reflect an overall increase in values of German residential property but rather points to a deficit in supply at the prime end of the market,' explains Benjamin Poddig, Associate Director of Savills and specialising in the valuation of residential properties.