JLL expects investment volume of up to €60bn
The German investment market for commercial property could conceivably top the next round figure this year. A transaction volume of “up to” €60mn is possible, says Germany CEO Timo Tschammler at JLL’s year-end press conference in Berlin. This would be a new record. Including residential transactions, however, the investment volume of an anticipated €76bn will fall short of 2015 (over €80bn). The commercial totals for 2018 would also look quite different were it not for the hefty price increases. According to calculations by JLL analyst Helge Scheunemann, price-adjusted transaction volumes for office properties have been declining since 2015, from then €22bn to currently €17.7bn. Scheunemann is not implying that this is a sign for overpricing, and points out that rents have increased even more proportionately. What happens next? Tschammler believes that though 2019 will not yet bring the turnaround regarding yields, it should see a slightly lower commercial revenue volume of up to €55bn. Including residential portfolios, JLL expects that investments will decline next year by 10 % to €70bn.
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