Investment volumes in Germany totalled about €2.6bn in February, the lowest monthly volume of commercial and residential property since July 2013, according to the latest edition of Savills’ Market In Minutes.
The firm also said that the rolling 12-month volume was €68.9bn, which represents a fall of 10.7% on the previous month.
The share of the total accounted by portfolio sales has also declined in the eleven months since the start of the first lockdown. Since April 2020, portfolios represented less than 34% of the overall volume which was also significantly below the five-year average of 42% and a level not seen since 2009 and 2010.
Average transaction size remains high
Nevertheless, the average size of transactions remained high. Since April 2020 lot size has been around €30.7m, which is above the five-year average of around €29.1m.
Savills said that price hikes in the residential, logistics, care homes and food retail sectors account for the high average figure in addition to the focus on core products in the office market.
The average deal size has dipped this year and in the first two months averaged only €23.4m. The firm expects significantly more and larger products will be brought to the market during the year though which will boost average lot size.