Total investment volumes in the German commercial property market have risen 21% year-on-year, according to first quarter figures releasedby property advisor Savills.
The German market saw total investment hit €6.65 bn during the first three months of 2013 - representing the highest first quarter levels for five years. The strong first quarter showing was fuelled by a number of significant portfolio deals, including the purchase of an IVG open-ended special fund for some €500 mln and Dundee’s purchase of a portfolio of eleven office properties for € 420 mln from SEB.
The office sector accounted for the largest proportion of deals recorded with more than €2.4 bn invested, representing 36% of the total transaction volume. Hotel investments rose by a massive 150% year-on-year to total almost €800 mln and investment in industrial and warehouse properties also increased sharply.
Retail investments, in contrast, decreased 9% on a year-on-year basis, to reach a total of approximately €1.9 bn.
The increased focus on the top six German locations - Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg and Munich - continues. The report shows that in all six markets investment volumes increased. Some €3.7 bn was invested in the six markets during the first quarter, representing a 46% increase on the same period last year. Savills forecasts that the total 2012 transaction volume of €12.9 bn recorded in the six markets is likely to be surpassed in 2013.
The report concludes that across the German market as a whole, total transaction volumes at least on the level of the €25 bn recorded in 2012 are anticipated for 2013.