Residential Investments: More Sales and Significantly Higher Prices

The market for residential investments increases further. Big winners are project developers.

Residential investments are considered most attractive on the German market. (Source: CC License, stocksnap.io)

Thanks to the particularly strong second half of the year, the German residential investment market grew intensely in 2017. According to Dr. Lübke & Kelber investments grew by 18 percent. Not as bold but still extremely positive are the calculations of JLL (15 percent) and CBRE (11 percent). However, the brokerage houses agree that two trends are emerging. This is on the one hand small-scale sales: about four fifths of the revenue was in transactions with few apartments, while there were only ten sales of projects with more than 2,000 units. On the other hand, more and more project developments are sold. Their share rose by approx. 25 percent in comparison to the previous year. Due to the many small project deals, purchase prices for end buyers increased immensely for each apartment sold.

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