Investors in the German market are increasingly targeting alternative real estate types as they look to diversify their portfolios.

In a study on the country’s real estate markets, Colliers says conditions continue to improve for Germany’s property sectors on the whole, but certain segments, such as life sciences, data centres and forest investment are gaining particular attention.

Colliers has been seeing a sharp rise in project completions in the German life sciences and tech sectors, with construction starting on a large number of property developments, particularly in Berlin, Baden-Württemberg and North Rhine-Westphalia. The country’s digital transformation will also mean growing energy requirements and an increase in data centre construction in 2024.

There are high expectations that timber modular fabrication will grow in residential construction, meaning that timber will gain in importance as a building material in 2024. Colliers says more investors