Real Estate Market United Kingdom

At the end of 2013, the German real estate market not only fulfilled bur outperformed its market expectations. The real estate transaction market for commercial real estate in the German big seven increased by 7.8 percent from € 15.2 bn in 2012 to € 16.3 bn in 2013.
In 2014, Germany will remain one of the most attractive real estate investment markets in Europe, and throughout the world. The German market offers investment opportunities for all categories of investors.

Office Market

The total number of completions across all Big 7 markets increased by 17 % compared to the first half of 2013. More than 420,000 sqm of new space were completed in the first six month of 2014. More than a third of this volume (156,000 sqm) related to Frankfurt, equating to a 28 % increase in new space in the gbanking metropolis. The strongest increase - although from a very low starting volume - was registred for Düsseldorf. Here, completions increased almost fivefold to 71,000 sqm. In the coming two quarters further completions of around 743,000 sqm are expected in the Big 7, taking the annual completions volume t 1.17 million sqm. This would then be 31 % above the 2013 volume. Despite this rising volume of newly built space, we see only limited impact on vacancies. Around 113,000 sqm of the completed space in the first half of the year was still available on the market, corresponding to a share of 27 %. The other spaces were already let or assigned to owner-occupiers at the time of completion. Furthermore, just over 36 % of the new space that is still scheduled for completion this year is still available to potential users. On average that is 40,000 sqm per city.

Residential Market

A higher building activity has become apparent since 2010 in Germany. Completion figures increased further by 15 % to 183,110 in 2011. The number of building permits, the increase was at a lower rate compared to the previous year (+5 %). The high number of permits should lead to more completions in the current positive market environment. One indication of the increased attractiveness off housing in densely built-up urban areas is the above-average completion figures of units in multi-family houses.
For 2012 and 2013, the number of building completions should significantly advance further to more than 200,000.

In the first six month of 2013, apartments with a value of € 7.05 bn were sold in Germany. This is almost the same level as that achieved during the same period last year. A total of approx. 100,000 apartments changed the owner, which is approx. 30,000 units fewer than in the first half of 2012. The average porttfolio size in the first six months of 2013 was approx. 510 apartments, around 20 % less than one year ago.



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