Germany “overtakes” Britain becomes the most exciting real estate market in Europe

In the end of 2016, the German real estate market surpassed the total value of € 59 billion, becoming Europe’s most active commercial real estate market.

By the end of 2016, Germany has become a safe market in Europe due to its strong economic growth and relatively stable political and real estate market diversity. So although the investment volume fell 14% earlier this year, however, global real estate consultant Knight Frank still believes that 2017 will also be a “flourishing” year for Germany.

So, what makes Germany “overtake” Britain to become the most exciting real estate market in Europe? Learn with Homedy right in the article below:

In 2016, about 55% of total trading volume was spread over 7 key cities including Berlin, Hamburg, Munich, Cologne, Dusseldorf, Stuttgart and Leipzig. Especially with a midsize city like Leipzig, it can be said that last year attracted huge investment unprecedented.

More than 60% of investment transactions in 2016 involve German investors compared to foreign investors. The evidence is in Berlin, Munich and Frankfurt, the segment of rental housing, office rent growth strongly.

Berlin has become a popular European innovation center, meaning the number of offices has increased the most in the past three years, convincing investors with a total transaction value of 5.7 billion Euro in 2016.

Along with the growth of Berlin, Frankfurt is in no hurry to become a city with more than 230 national and international banking institutions headquartered in 2016. Achieving the highest rental rates since the crisis Global financial year 2007 with a total area of ​​530,000m2.

In fact, about 4.7 billion euros have been invested in commercial property in Frankfurt in 2016 and although office investment has been limited, the office sector still attracts 3.3 billion euros.

Meanwhile, Munich is Germany’s second largest employment hub, with about 30,000 jobs created annually. Therefore, the segment of office leasing is always in high demand throughout the country. A total of 780,000 sq m of leased office space by 2016, this is considered to be one of the highest totals ever recorded. Munich became Germany’s second most prominent destination for investors, with a total value of 5.5 billion euros.

Conclude

James Roberts, Knight Frank’s economist, said: “Germany is one of the leading economies that will become the leading destination for real estate investors in Europe by 2016.” .

On the same issue, Joachim von Radecke, head of research for the major European property markets of Knight Frank, said: “With seven key cities with distinct characteristics of occupational needs, Continue to help Germany make important differences compared to other European markets.

Accordingly, with seven key cities and the leading advanced economy, 2017 promises to remain a vibrant year of excellence in the German market. Reach the number of transactions beyond expectations and master the leading position in Europe.

Hope the information above will be useful to you!

Source (Internet)