Savills: The fog surrounding pricing in the German commercial real estate investment market is lifting

Activity in the German commercial property investment market stabilized in the second quarter of the year but remained subdued, according to Savills. Both the number of transactions and the transaction volume were marginally lower than in the first quarter.

The transaction volume in the first half of 2023 totaled approximately €9.6 billion ($22 billion). This was around two-thirds lower than in the corresponding period last year and the weakest investment volume in the first half year since 2012.

In view of the current transaction pipeline, Savills does not envisage an increase in completions during the summer. However, the number of deals could increase significantly again in the autumn. Nevertheless, Savills has revised its projected investment volumes for Germany for 2023 downwards from approximately €30 billion to less than €30 billion ($34 billion).

“Transaction activity has stabilized at a low level in recent months. However, what the figures do n