Insurers risk more – real estate holdings exceed 10%


EY Real Estate’s 12th survey, conducted among 24 insurers, indicates that the German insurance industry is expanding its real estate investments and accepting higher risks. The average percentage of real estate holdings now stands at 10.3%, after remaining below the 10% mark in 2017 and 2018. 70% of the respondents intend to expand their real estate investments, primarily motivated by yield targets, which have seen a slight rise (4.51% for direct real estate investments and 4.96% for indirect real estate investments) since the last survey. Core plus is the new core, according to EY partner Dietmar Fischer. Office use still ranks first; interest in residential real estate remains high despite high prices. Demand for logistics properties is up from the previous year, while the demand for retail properties is falling.

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