RECORD TRANSACTION VOLUME ON THE BERLIN REAL ESTATE MARKET
After the Corona dip in 2020, Berlin’s real estate trade once again achieved record levels. According to the preliminary evaluation by the Gutachterausschuss für Grundstückswerte (GAA), the transaction volume in 2021 was €23.8 billion, higher than ever before.
RESIDENTIAL REAL ESTATE MARKET 2021: WITH 21 TRANSACTIONS HALF THE VOLUME
In November, the transaction volume on the investment market for commercial and residential real estate amounted to around EUR 7.6 billion. The rolling twelve-month volume at the end of the month was around €113.0 billion, up 0.5% on the previous month. In the last twelve months, 2,400 individual and portfolio transactions were recorded. This is in line with the level recorded in 2020 as a whole, but 13.6% lower than in the pre-crisis year of 2019. Overall, the impression that the market is settling at a new level slightly below the prepandemic period in terms of transaction activity is becoming more firmly established.
THE COMEBACK OF INTERNATIONAL CAPITAL
The transaction volume on the German real estate market was a whopping 111 billion euros. According to JLL, this represents an increase of 36% compared with 2020. This new all-time high impressively documents the attractiveness of German real estate across all types of use, with residential investments clearly dominating, of course. The signs are good that this trend will continue. This is because international investors have so far held back during the pandemic years. That is likely to change in 2022.
2021 PEAK FOR RESIDENTIAL INVESTMENT
Researchers at Savills expect record transaction volumes in the German residential investment market in 2021. The reason for this is the almost perfect underlying conditions: Falling bond yields, accompanied by comparatively strong growth in population figures and household incomes, as well as very low housing completion figures.
SOON 100 BILLION EUROS IN TRANSACTION VOLUME AGAIN?
In the first three quarters of 2021, real estate in Germany changed hands for around EUR 58.9 billion. Of this, commercial properties accounted for around EUR 38.3 billion and residential properties for around EUR 20.6 billion. This is the result of a report by Savills.
RECORD SALES OF 220 BILLION EUROS ON THE GERMAN RESIDENTIAL REAL ESTATE MARKET
According to the German research institute Gewos, 221 billion euros flowed into the residential real estate market last year – a new record. Supply will remain tight in major cities. Stagnating or falling population figures have not changed this situation. The bottleneck is building land. Berlin is the best example of this: year after year, less land is being sold. For 2020 Gewos even reports a minus of about 20%.