German commercial investment market stays in line with five-year average

The German commercial real estate investment market recorded a transaction volume of €41.1 billion ($48.4 billion) in the first nine months of the year, according to Savills. This is in line with the five-year average and represents a decline of only 9 percent year-on-year. Prices remained predominantly stable, at least in the prime segments. Savills expects the transaction volume for the full year to reach around €55 billion ($65 billion) (2019: €71 billion/$84 billion; five-year average: €62 billion/$73 billion).

Savills notes that German (60 percent) and other European buyers (32 percent) have dominated the market in the last two quarters. Property companies/REITs, special funds and insurance companies/pension funds, in particular, showed above-average activity during this period. The latter have already invested around €2.5 billion ($tk billion) this year, which is more than all of 2019.

Almost three-quarters of the acquisition volume from insurance compa