Following two years of constrained cross-border investment, the German markets can expect pent-up demand to be unleashed during the next 18 months, according to Savills’ Marcus Lemli.
That demand could well benefit from structural changes underway in different sectors which have been amplified by the covid crisis.
“We’re seeing ESG as a big driver and opportunity to develop new properties,” Lemli told Real Asset Insight’s Richard Betts.
There are opportunities to transform B-grade properties into A-grade and ESG compliant property. “So there’s a lot going on there.”
Lemli added that there are also opportunities to convert hotels into other uses as well as in repositioning shopping centres.
“It’s all about taking advantage of those structural changes of demand and opportunities to buy long-term and diversified income.”