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Germany’s commercial investment markets continued to be largely characterized by changing debt conditions and a challenging overall economic environment in second quarter 2023, according to BNP Paribas Real Estate Germany.
Investors only poured just shy of €9.8 billion ($11 billion) into German commercial real estate and development sites in first half 2023, reflecting a 68 percent year-over-year decrease. This comparison is not particularly relevant, however, as the debt environment has completely transformed during the past 12 months. The fact that results came in 57 percent below the 10-year average speaks to the current situation on the market. The first-half transaction volume was roughly in line with the results posted in the years after the financial crisis. Investment in residential real estate (starting at 30 units) also dropped tangibly in first half 2023 to €2.6 billion ($2.9 billion), coming out below-average. That puts total transaction volume on the German