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ePaper created 2015-04-21, 16:47:46 | version 1.37.0
17management report Commercial Property – Germany The German commercial property market developed very dy namically as the volume of transactions surged by 30 percent to almost € 40 billion. This marked the fifth year in a row with higher transactions and made 2014 the best year since 2007. This development was fuelled by the unbroken low level of in- terest rates and the solid development of Germany’s economy. Sales of property portfolios amounting to € 12 billion accounted for almost one-third of the total volume of transactions. This fig- ure meant that turnover volume noted for portfolios more than doubled in comparison to the previous year. Foreign investors were again very active and accounted for al- most half of the volume of transactions. Asian investors, espe- cially Chinese, were increasingly involved. In terms of investor categories, asset managers and special property funds together represented 37 percent of activity in the market followed by private investors/family offices, project developers and oppor- tunity funds/private equity funds with shares of 8 to 9 percent each. “The German commercial property market developed very dynamically. Office properties were the preferred class of investment.” Top properties in top locations remained the focal point of in- vestor interest. The volume of transactions in the seven best property locations was about € 23 billion. Greater investor in- terest was also observed for the value-add category. And there was also greater willingness seen to invest in slightly lower quali- ty properties or properties that were not fully let, as well as in properties located in less central locations in major cities or in smaller cities. Office properties were the preferred asset class followed by retail properties. Hotels and logistic-use properties are also noteworthy as demand surged for both categories. Top returns for office properties fell again due to strong demand. The average figure noted in the seven best property locations de- clined by 10 basis points to 4.5 percent. The spectrum ranged from 4.0 percent in Munich to 5.1 percent in Cologne and Stutt- gart. The office rental market proved to be robust over the course of the year, especially due to the strong fourth quarter. The volume of turnover rose slightly and totalled about 3 million square metres. Development in the seven best property locations did, however, vary greatly as Berlin, Hamburg, Stuttgart and Munich recorded gains while Düsseldorf, Frankfurt/Main and Cologne experienced declines. At the end of the year the volume of va- cancies in the aforementioned seven cities hit a new low and totalled 6.8 million square metres. The current figure is 7.6 per- cent, which is 0.6 percentage points less than 2013. Commercial Residential (only portfolio) Source: EY Research, January 2015 Development of commercial property transactions in Germany 2009 – 2014 Figures in ¤ billion 2009 2010 2011 2012 2013 2014 50 55 45 40 35 30 25 20 15 10 5 0 10.1 3.3 3.8 19.1 6 23 11 25 30.5 13.7 12.8 39.9 200920102011201220132014 3.33.8 13.712.8