Thursday, 18 October 2012

Office Investments in Germany Q3 2012

Investors spent more on office properties in Germany through September than in the same nine-months period during the last five years, buying more than twice as much in Berlin (172%) and Munich (138%) than the same period last year while other cities of the German "big six" like Hamburg or Dusseldorf had a slight decline.

Office properties valued at 6.27 billion euros ($8.22 billion) were sold in the first nine months of 2012, a 50 percent increase from 2011, according to data compiled by BNP Paribas (BNP) SA’s German real estate unit.

“Safety-oriented investors see good conditions here due to the relatively stable economic and employment situation,” Sven Stricker, head of investment at BNP Paribas Real Estate GmbH, said in a statement today. “Office investments have a good medium-term outlook, assuming the euro crisis doesn’t escalate.” For the full report in German click here.

Demand for German property in all property sectors has significantly increased this year as investors are seeking a safe place to put their money amid the risk scenarios of the euro zone’s sovereign-debt crisis. Germany’s economy, Europe’s largest, is forecast to grow 0.8 percent this year, according to the government and 1.0 percent for 2013. The economies of the 17 nations that share the euro are together forecast to contract 0.4 percent, according to the European Central Bank.


The demand for property investment opportunities in Germany is unwavering. The yields are under pressure due to the international influx of investors. Especially properties in Berlin are in high demand because of the relative undervaluation compared to other European capitals and the recent rent increases.



Come back regularly as we will provide information on other market sectors shortly.


Uwe Falkenberg, owner of
Falkenberg Solutions
Real Estate Consultants


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