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| German residential portfolio transactions to hit €12 billion in 2013 International real estate advisor Savills predicts that with a further rise in investment volume on Germany's residential portfolio market recorded in Q313, by year end total turnover should hit the €12 billion mark, against €10.45 billion recorded in 2012. In the third quarter of 2013, 60 residential portfolios representing a total volume of € 2.9 billion changed ownership bringing the Q1 to Q3 total to €8.8 billion. This, the firm highlights, represents a 14% increase compared with the same period in 2012. Karsten Nemecek, managing director corporate finance – valuation at Savills Germany, says: "Uncertainty prior to the Bundestag elections and debates on a potential interest rate turnaround had no noticeable effect on the demand for residential properties in Germany. Investors continue to be in a buying mood." On the buy-side German buyers account for almost three quarters of the total transaction volume in the first three quarters of 2013 according to Savills research. The remaining share is almost fully attributable to European buyers with investors from Austria (7%), Luxembourg (6%) and Switzerland (5%) being the most active. The firm notes that on the sell-side German investors were also the dominating players accounting for 66% of the transaction volume so far in 2013. US investors follow representing 16% and disinvestments worth approximately €0.9bn. These investors, mostly taking an anticyclical approach, have taken advantage of the current market environment to dispose of their properties, many of which had been held for a period of only one or two years. These include Cerberus selling part of its Speymill portfolio purchased in 2012 to Deutsche Wohnen. In terms of buyer profiles, listed property companies such as Deutsche Wohnen represent by far the most active group of buyers on the German residential portfolio market, accounting for approximately €2.9bn of transactions so far in 2013. This volume is almost three times the amount invested by insurance companies and pension funds, which represent the second largest group of buyers accounting for just below €1.2bn of transactions in this period. Savills observes that both these buyer groups continue to look for opportunities to invest and with the fundamentals still favourable to the German residential market the firm expects transaction volumes to remain at a high level over the medium term. write your comments about the article :: © 2013 Construction News :: home page |