Demand for German commercial real estate set to continue

Commercial real estate transaction volumes in Germany in 2020 were €59 billion ($71 billion), only 6 percent below the five-year average, according to Savills. Given that many investors are unlikely to have achieved their acquisition targets in 2020 and could receive even more capital targeting stable income this year, the international real estate adviser expects volumes in 2021 to once again reach €50 billion ($60 billion).

Marcus Lemli, CEO Germany and head of investment Europe at Savills, said, “In view of many feeling the pressure to invest and an increased risk in the occupier market, we believe the strategies of individual investors beyond the lowest common denominator of ‘logistics, residential and AAA offices’ will become more differentiated.

“For example, many investors are likely to view any downturn in the capital values of offices in B-locations as a countercyclical opportunity for acquisitions, while others will regard the same properties as h