According to a new study, large investors are likely to invest less money in German real estate in 2019. The volume of purchases and sales of large residential portfolios and commercial real estate is likely to decline slightly, according to a study by the consulting firm EY, which was presented in Frankfurt on Wednesday. According to the study, the authors expect transactions this year to reach between 72 and 75 billion euros.
In 2018, real estate worth 78 billion euros changed hands, an increase of 7 percent on the previous year. The reason for the expected minus this year is that apartments are becoming more scarce and more expensive, particularly in big cities. As a result most transactions will probably occur outside the metropolises. In addition, EY expert Christian Schulz-Wulkow explained, there were also bottlenecks in the construction sector.
After years of rising prices, the real estate market is in the later stages of the current cycle. According to the study, more and more investors are selling properties for profit and only buying selectively.
However, investor interest remains high. "Germany is still one of the most attractive real estate markets in the world," said Schulz-Wulkow. The expected transaction value of up to 75 billion euros is still far above the annual average of 46 billion euros over the past 15 years.
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