The investment market for real estate in is booming. Real estate consultancy CBRE announced on Wednesday that sales had reached a record volume of almost 61 billion euros in the first three quarters. That is an increase of eight percent compared to the same period last year. The transaction volume increased by 38 percent, especially in the residential property market, which at almost 21 billion euros also accounted for the largest part of business ahead of office properties (18.6 billion). Not only the demand from investors, but also the users of real estate is developing positively, explained the head of real estate market research at CBRE Germany, Jan Linsin.
“The office rental markets have bottomed out and a certain normalcy is returning, although the subject of flexible and hybrid working continues to gain in importance and accordingly requires new office concepts and work environments,” said Linsin.
According to CBRE, transactions in the investment market for office real estate increased by three percent. In the retail sector, on the other hand, investments fell again by 23 percent in the first nine months of 2021 compared to the previous year’s period, which was heavily influenced by Corona. Nevertheless, Linsin was overall confident: “The corona node is bursting and people want to go back to the office and the shopping streets, so that the cities and their properties gain in importance,” said the expert.
The Germany boss of the real estate consultant Colliers, Matthias Leube, expressed a similar opinion. “The uncertainty in the markets caused by the pandemic has largely been overcome,” explained Leube. “The retail and hotel asset classes, which have been particularly hard hit by the pandemic, are increasingly radiating optimism.”
According to Colliers, grocery stores were in demand for retail properties, while sales in inner-city commercial buildings and shopping centers are still very weak. Investments in the market for retail real estate have, overall, almost overtaken the industrial and logistics sector to second place after office real estate. “The head-to-head race between the winners of the crisis” will continue to be observed, “explained Christian Kadel, Head of Capital Markets at Colliers.
The industry is also optimistic for the final spurt in 2021: “The German investment market is heading for a strong end to the year,” said the head of BNP Real Estate Germany, Marcus Zorn. The dynamic development of the summer months should even pick up speed again. “As long as the central banks do not implement extensive interest rate increases in the short to medium term, investor interest will remain high.”
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The statistics on the investment markets also include major deals, some of which the consulting firms themselves were involved in. According to its own information, BNP Paribas Real Estate accompanied the billion-dollar business in Frankfurt’s banking district that became known at the end of July. The real estate subsidiary of Allianz and the Bavarian Supply Chamber (BVK) jointly bought one of the four towers under construction in the “Four” high-rise complex for 1.4 billion euros.
CBRE, in turn, accompanies the sale of thousands of residential properties in Berlin and Hamburg from the Swedish company Akelius to its Swedish rival Heimstaden.
Real estate prices continue to rise, supply is scarce, and credit is still cheap. But the dream of owning a home can only come true if buyers finance wisely and avoid common mistakes. .