German investors are increasingly focusing on foreign residential markets as the number of suitable domestic assets continues to drop.
A panel of speakers addressing the state of the German residential market, during an online press conference held in early July, said high construction costs, lengthy approval procedures, unstable funding frameworks, high construction standards and regulatory uncertainties have created a situation where elevated excess demand is meeting a structural supply shortage in many major cities. At the same time, current yields are often insufficient to compensate for the market’s many risks.
In response, German capital is seeking to invest in other global markets that have more flexible and responsive planning authorities, as well as lower costs and better returns.
Pepijn Morshuis, CEO of Trei Real Estate, says the long lead times for development plan procedures are a particularly critical issue in Germany. He explained that some proje
