RESIDENTIAL INVESTMENT: ASSET CLASS WITH HIGHEST VOLUME IN 2024
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The German residential investment market continued its recovery in the fourth quarter. The investment volume increased significantly in 2024 compared to the previous year, with €9.3 billion being invested in larger residential portfolios (30 residential units or more). This makes the residential investment market the asset class with the highest turnover in 2024, well ahead of logistics (approx. €6.9 billion), retail (€6.3 billion) and office investments (€5.2 billion). Although the long-term average was undercut by 50%, the previous year's result was significantly exceeded by 78%. In addition, development sites worth a good €600 million were sold, which also indicates a positive outlook for future development activities. On a positive note, the first major value-add deals were once again concluded. An increased number of registered large-volume core deals proves that a marketable price structure has emerged after the uncertainties of the previous quarters.
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The solid investment environment of A-cities, and Berlin in particular, was in high demand last year. At the end of the year, the German capital had a high volume of €3.4 billion and an above-average share of 37% of the total residential investment volume (Ø10 years: 28%), or a very high market share of 67% of the residential investment volume in A cities. Seven major deals in excess of €100 million and two large-volume nationwide portfolios in the triple-digit million range with shares in the capital city underline the high level of confidence in the German residential investment market in general and the Berlin market in particular.