32
GERMANY
ISSUE
I
OFFICE PROPERTIES
segments as well as a strong increase in
prices. The German market‘s reputation
as a safe haven for investments as well
as the popularity of the real estate asset
class increased steadily over the course of
the year. The ECB‘s loose monetary pol-
icy, the late increase in interest rates in
the US in December, several months of
negative interest for German government
bonds, removing their status as a low-
risk investment alternative, the pending
Brexit, sluggish economic performance
in emerging economies, an increase in
political uncertainty and the outcome
of the US elections – all of these factors
boosted pressure to invest in German real
estate to unprecedented levels.
German Investment Market Surpasses
the €50bn Mark for the Third Time
Office properties in investment hubs remain most coveted asset class. Exceptional result
of the German office lettings market enhances the attractiveness for investors
Photo: LaMiaFotografia / shutterstock.com
I
n 2016 German commercial properties
changed hands for a total of €52.6bn.
Following the 2007 all-time high of
€59.3bn and strong previous year results
of €55.4bn, this is the third time the €50bn
mark has been surpassed and the ten-year
average (2007 to 2016) exceeded by 56%.
PENT-UP DEMAND FINALLY UNLEASHED
IN Q4
The reason for this result was an
above-average end-of-year rally with a
transaction volume exceeding €20bn in
Q4 alone. This strong momentum in Q4
can be attributed to months of pent-up
demand unleashing at the end of the
year due to a previous lack of purchase
opportunities in the core and core plus
Ultimately, all locations surveyed by far exceed-
ed their long-term averages, demonstrating that
the German market is in good shape.
AVERAGE RENT
Source: Colliers
The ECB‘s loose monetary
policy, the pending Brexit,
and more – all these factors
boosted pressure to invest
in German real estate to
unprecedented levels.
Frankfurt
Berlin
Munich
Hamburg
Düsseldorf
Stuttgart
Cologne
1
2
3
4
5
6
7
€/m²/
month
2012 2013 2014 2015 2016
20.00
18.00
16.00
14.00
12.00
10.00
1
3
4
5
6
2
7
