Germany is now Europe’s most active commercial property market

Germany is now Europe’s most active commercial property market

Germany managed to overtake the UK as the most active commercial property market in 2016 with transactions totalling €59 billion, research has revealed.

Global real estate advisor, Knight Frank, explained that since last year, Germany has slowly been established as Europe’s safe haven. This is mainly due to its robust economy, relative political stability and diverse property markets.

Germany’s investors & Manchester’s property: An unusual friendship

More than half (55%) of all transactions were spread across the country’s seven key cities: Berlin, Frankfurt, Hamburg, Munich, Cologne, Dusseldorf and Stuttgart.

Over 60% of investment transactions of the last year happen between German buyers as the competitiveness of the country’s pricing has started to price out overseas investors.

A big part of Berlin’s success is its emergence as one of Europe’s creative hubs, which led to a lot of office space being taken up over the last three years. This trend made a compelling case for for investors and led to a total on transaction of €5.7 billion in 2016.

Furthermore, Knight Frank highlight Frankfurt has Europe’s leading financial centre and home to 230 national and international banking institutions. Last year, the city also saw its highest level of leasing activity since the global financial crisis in 2007.

Strong UK commercial property market demonstrates resilience in first quarter

Munich, another one of the big seven, is Germany’s second largest employment hub with around 30,000 jobs created every year. This underpins a very strong demand for office space.

James Roberts, chief economist at Knight Frank, explained:

“Germany is one of the premier advanced economies in which to invest, and it emerged as the leading destination for real estate capital in Europe in 2016.”

“The economic outlook remains strong, as it continues to lead the recovery in mainland Europe, although with a national election in September some investors may adopt a more cautious stance in the short term.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT