IREIT Global Group Pte. Ltd. - Annual Report 2014 - page 31

German
Market Review
Investments in 2014
The favourable financing environment, low interest rates, massive liquidity, and Germany’s overall stable economic
status, were the main reasons for the increase in real estate investment.
Top Sector in 2014: Office property sector
Of ice
Retail
Logistics
Hotel
45.0%
Others
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
42.3%
23.2%
10.2%
7.7%
16.3%
The Office property sector investment transactions
accounted for
5.85 billion in the fourth quarter and the
yearly volume hit €17.7 million, accounting for 42.3%
of total investment activity across all sectors. Office
properties that are well-located, and contemporary
in appearance and layout continue to be favoured by
investors. The fall in the net initial yield for all asset
classes in most of the major locations in 2014 was
triggered by the increase in demand and relaxed rules
on borrowings.
The investment market in Germany grew significantly
in 2014. Approximately €14 billion of real estate
investments were processed in the fourth quarter of
2014which helped end the year with a total transaction
1)
Colliers International – Germany Office Letting and Investment – Market Report 2014/2015
2)
NAI Apollo Group Investment Market Germany Q1 2014 report
volume of €39.8 billion
1
. The largest increase in
investment volume was partially driven by the high
proportion of portfolio transactions.
The total investment in portfolios amounted to €12.4
billion which is a third of the total investment volume
and a 57% increase year-on-year. International investors
continue to drive the market and expand their market
share. In 2014, international investors spent over
€17 billion which translates to an increase of 86%
in the total investment volume. Among some of the
major transactions in 2014 were the sale of the Leo I
portfolio and the Portigon portfolio for approximately
€350 million
2
.
Source: Colliers International – Germany Office Letting and Investment – Market Report 2014/2015
19.4
2010
2011
2012
2013
2014
2015F
23.2
25.4
30.7
39.8
44.0
Commercial Transaction Volume in Germany (€ billions)
Source: BNP Paribas Real Estate – Investment Market Germany – Property Report 2015
IREIT Global
annual report 2014
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