According to a study by owner-managed real estate consultancy firm NAI apollo real estate residential property portfolio market in Germany makes strong start sales reach €3.7bn in Q1 – a partner of the NAI apollo group – the market for residential portfolio transactions in Germany made a better start to 2017 compared with 2016, with sales reaching around €3.7bn (Q1 2016: €2.2bn).
Dr Konrad Kanzler, Head of Research at NAI apollo real estate explained: “Thus the transaction volume was 70% above the previous year’s level, but was still well below the €10.8bn achieved in the first quarter of 2015,”
The number of traded residential units reached about 27,700 and exceeded the number of units sold in the first three months of 2016 (around 23,000) by 20.4%. The number of transactions increased by 42.5% to 104 transactions (Q1 2016: 73). There were also more deals that exceeded €100m. While only three deals in this range were realised in the first three months of 2016, the number doubled to six in the recent quarter. In addition, one transaction above €500m took place, following a complete absence of such deals in Q1 2016.
At the same time, the €100m to €500m and €50m to €100m categories also registered strong increases of approximately €0.4bn apiece, or over 95% and almost 88% respectively.
Stefan Mergen, Managing Partner of NAI apollo valuation & research said: “The volume of transactions worth above €50 million in project developments increased more than threefold from Q1 2016, rising to €0.7bn”.
However, the transaction volume generated by small portfolio sales of between €10m and €25m also doubled to around €0.6bn compared to Q1 2016.
Based on the positive first quarter, NAI apollo expects the transaction volume in the year as a whole to be in line with previous years, excluding the record result of 2015. Thus total sales should lie between €13bn and €15bn.
