Off-market deals: everyone’s doing it, no one’s telling
Hidden real estate transactions reached a volume of around €40bn last year. This is the conclusion of a study led by HPBA, a consulting firm focused exclusively on off-market deals, together with Bulwiengesa. This sum would still come on top of the approx. €70bn in transaction volume registered by the brokerage houses. Hardly any reliable data exists for the off-market segment, however; moreover, a large proportion of transactions are handled as share deals and as such are not subject to real estate transfer tax. The study also states that this figure is a “rough estimate”. More important results than the sheer market size are that nearly all (96%) of the approx. 700 experts surveyed participated in off-market deals in 2017, says HPBA CEO John Amram. The study also found that the 52% closing rate is higher than for “normal” deals (35%) and that investors are willing to pay up to 10% more.
Subscribers to our premium service have access to this article in full as well as to an additional 480,000+ news items: all filterable by topic, company, asset class, city or keyword. In TD Premium you can search for investment deals, leases, current project developments and company news with pinpoint accuracy.
TD Premium is Germany's leading property information tool that interconnects news, transactions, project data, market and company information in a unique and flexible system.