Investor interest in German retail is rapidly drying up
Investors interest in German retail assets is rapidly drying up and a lack of transactions have made it difficult for vendors and buyers to assess the impact that the COVID-19 crisis has had on valuations.
The drop-off in investment means that Germany’s retail real estate sector is under growing pressure to transform and modernise, according to a panel of German retail experts speaking during an online press conference in December. The panel said that the country’s retail sector would soon face a wave of transformations, restructuring efforts and conversions, mostly involving large-scale high-street retail properties such as shopping centres and department stores.
Figures from Germany’s Federal Statistics Office show that by October last year, overall retail revenue had grown by 8.2 percent since October 2019. Sales of furnishings, household appliances and building materials had grown by 14.2 percent during that period.
However, the clothing industry suffe