November saw €5.4 billion in commercial and residential investment transactions in Germany creating a rolling twelve-month volume of €87.2bn which was down 1.9% on the previous month according to Savills.
In its Market in Minutes report the firm said that commercial investment volumes for the year to date are 17% lower than in the same period last year nor are fourth quarter figures likely to reach the level achieved last year even though the volume of commercial deals has reached €49.8 billion since the beginning of the year, which has defied some expectations given the effects of the pandemic.
However, with residential deals of assets with 50 units or more totalling €17.9 billion since the beginning of the year, this sector has already beaten the full-year figure for 2019. It was the highest figure since 2015.
Savills said that although low interest rates are likely to encourage strong investor demand there are doubts about future space requirements for offices and retail. But having a roof over our heads “is one of the basic existential needs of us humans.”
Residential property offers us that and is therefore “non-substitutable”, the firm said which alone means that residential property is gaining as an investment but with the added boost from Covid-19 as “the apartment” becomes the centre of life.