Transaction volume in the German real estate investment market is set to exceed EUR 20 bn in 2011, CBRE´s CEO for Germany Peter Schreppel told PropertyEU at EXPO REAL. ´This will be a very good year for the German market,´ he said. ´In the first nine months we already recorded EUR 16.8 bn thanks to a slight increase in Q2.´

Germany is very much in the spotlight for international investors, he added. ´All investors are looking for stability in a world where the only stable thing is instability.´

With a growing number of investors targeting the German market, yields for core assets in prime locations have compressed in recent months, with levels down to around 4.8% in Munich and 5.1% in Berlin. Schreppel conceded that there was a lack of product, but said he saw little evidence as yet that the market had become overheated. ‘Yields are under pressure, but they are only moving slightly within a certain bandwidth.’