Closed-end property market gains traction in Germany

The market for German closed-end real estate funds is on the rise, according to German real estate firm Intreal.

An analysis of statistics from Bundesbank, the central bank of the Federal Republic of Germany, saw an increase of 13 percent in 2019, with net fund assets amounting to €26.8 billion ($29 billion) at the end of the year. At the end of 2018, that figure was €23.4 billion ($25 billion).

Between December 2017 and December 2019, the closed-end property fund market grew by about 21 percent, or €4.7 billion ($5 billion), according to the data.

“The market for closed-ended property funds is once again experiencing a robust upward trend,” said Michael Schneider, managing director of Intreal. “Since the introduction of the new regulations under the German Investment Code, closed-ended property funds have been launched as investment KGs. With this, the closed-ended vehicles seem to have adopted a ‘new look’ and found their target customers and i