Fog surrounding German commercial pricing begins to lift
- September 1, 2023: Vol. 17, Number 8

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Fog surrounding German commercial pricing begins to lift

by Marek Handzel

The uncertainty surrounding German commercial real estate pricing is beginning to lift and could restore liquidity in the market.

As with many European markets, low transparency surrounding pricing has prevented or thwarted many transactions, in recent months. Savills says, however, that “the fog” around valuations has lifted significantly, with benchmark transactions now appearing in every sector. In recent weeks, Savills has observed the commencement and preparation of a rising number of sale processes.

“Willingness to sell remains subdued,” says Marcus Lemli, CEO Germany and head of investment Europe at Savills. “However, owners are at least selectively targeting disposals again. Some are seeking to build up liquidity for forthcoming refinancing, while others are aiming to dispose of properties from their portfolios that are not ESG-compliant. Overall, we expect supply to increase over the remainder of the year and, since there is certainly capital availab

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