Germany: Quality will shine through
The poor economic performance of Germany in 2014 and the loss of the country’s moniker as the “locomotive of Europe” has been reversed in recent months, as economic growth starts to fight through the veiled shroud of euro zone deflation and give grounds for optimism that Germany can lead the euro zone and the rest of Europe to better times.
The German commercial real estate market was especially active last year, with transaction volume up considerably on 2013, and the pace of dealmaking has accelerated in the first months of 2015. Savills reports that full-year 2014 investment volume in Germany stood at €39.78 billion, up by 27 percent on 2013, and the firm expects a further substantial increase this year.
Andreas Wende, head of investment at Savills Germany, comments: “Prime properties were sold at top prices [last year] but non-core assets also drew strong interest throughout the year, resulting in the strongest transaction volumes since 2007.”