Demand for German real estate continues to rise
By international comparison, real estate in Germany remains in high demand. This was revealed by an Ernst&Young (EY) survey of 130 real estate investors. Almost all respondents (96%) classified the market in Germany as attractive or very attractive. EY said the influx of foreign capital is expected to keep on climbing, especially from Asia. In their turn, Germany-based investors (71%) were predicted to pursue more investment alternatives abroad. The main reason given for this is the expectation of higher returns. Also, results indicate a continued trend toward riskier investments in 2015. Residential real estate again tops investors’ shopping lists (51%). Retail properties are seen as much more attractive than a year ago (44% vs. 32%), while office buildings lost slightly (39% vs. 42%). According to EY’s forecast, the total transaction volume (residential and commercial) should come to €50-54bn (2014: €52.7bn).
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