Market in Minutes: Investment Market Germany

Highest twelve-month volume of all times

• In February, the transaction volume on the German real estate investment market amounted to approximately €8.16bn. The rolling transaction volume of the last twelve months amounts to approximately €94.2bn - this is the highest value of all times.
  
  
• Mergers and acquisitions were the main drivers of the recent momentum. Aroundtown, for example, acquired a 77.5% stake in TLG and 80 properties changed hands in the course of the takeover of Real. Overall, in the last twelve months, company takeovers and acquisitions accounted for about 9% of the transaction volume.
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  As a result of the COVID 19 crisis, interest rates have fallen again. The US Federal Reserve Bank has lowered the key interest rate and yields on German government bonds are also continuing to fall. Given the turbulence on the financial markets, investment alternatives to real estate have become even less attractive, at least in the short term. Although a prolonged economic downturn would also have negative consequences for the real estate markets, in the short to medium term it could lead to a further decline in willingness to sell. Over the last twelve months, the number of property sales has already been the lowest since May 2015. The product shortage could further intensify in the coming months.