SIGNIFICANT MARKET UPTURN IN Q2
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After a weak start to the year, the second quarter of 2024 recorded a significant upturn in activity on the German residential investment market. The transaction volume increased significantly compared to the previous year. Across Germany, €3.3 billion was invested in larger residential portfolios (30 residential units or more) in the past six months. This exceeded the half-year result of the previous year by 25%, although the long-term average was undercut by 59%.
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The solid investment environment of the A cities was particularly popular in the first six months. The Big Six cities accounted for a far above-average share of around 69% (Ø10 years: 46%) and thus dominated the transaction activity on the German residential investment market.
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Among the Big Six cities, Berlin stands out in particular with the highest share of transactions ever recorded at around 57%. The German capital also sent out a strong signal in absolute terms with an investment volume of €1.87 billion. Transactions from the first half of the previous year (€790 million) were more than doubled and therefore also significantly above the long-term average (€1.68 billion). The sale of a large portfolio (€700 million) from Vonovia to the municipal housing company Howoge made a major contribution to this. These transactions emphasise the good medium and long-term prospects on the German housing markets and the high level of basic confidence in the German capital.