20
GERMANY
ISSUE
I
COVER STORY
learning process for investors, especially
those from China, who are looking to
put money into this asset class for the
first time,” notes Pink. The industry ex-
pert points to the coordination during
the buying process: the decision-making
process often took far too long, which was
a hindrance particularly during the boom
phase. According to Pink, otherwise Asian
investors last year would have been found
higher up in investment statistics. But he
is certain that, “this will change in a year
or two at the latest.”
“The supply situation is currently
dictating transaction landscape in near-
ly all market segments,” notes Klein. As
opposed to three or four years ago when
desirable properties had two or three pro-
spective buyers bidding, now that number
is at least ten, for apartment buildings in
top locations inmajor cities as much as 40.
“There is an extreme shortage of supply,
so that properties and portfolios for large
transactions are slowly running out,” says
Klein. This was already the case this year
for shopping centers. With regard to the
volume of transactions, the CRBE indus-
Together with a Swiss family
office, the Townscape One
Group acquired a 9,230 sqm
plot in Berlin
Transaction volume for commercial properties
DEVELOPMENT
Source: CBRE
2013
29.3
EUR bn
2014
38.7
EUR bn
2016
52.7
EUR bn
2015
53.7
EUR bn
mains to be seen what consequences there
will be, for example, for American banks
that preferred to carry out their financial
transactions with the EU via London.
Could it be that language, cultural similar-
ities and possible tax incentives will make
Dublin the main beneficiary of Brexit, or
will perhaps Paris or Frankfurt have an
edge? “Other than a few separate enquir-
ies, there has not been anything binding,
but that can quickly change as soon as the
exit procedures are in place,” says Klein.
INVESTMENTS ARE CONCENTRATED IN THE
TOP 5 CITIES
Investments of foreign inves-
tors are concentrated primarily in the top
five cities, i.e. Berlin, Hamburg, Munich,
Frankfurt and Düsseldorf. “It’s not that
easy, especially for those with no experi-
ence in these real estate markets, to work
out an investment strategy,” notes Pink.
Germany has several real estate centers,
while in other large European countries
investments are concentrated on one met-
ropolitan region such as London in the UK
or Paris in France. “Getting to know the
German real estate market is an elaborate
Photo: Cadman
