Real estate market report 2020 / 2019

+++ NEWS ++++ 2020 - A new record year has begun! +++ NEWS +++

The current record numbers for 2019 have been announced. The year 2019 successfully exceeded all expectations, so in 2019 a transaction volume of  91.3 Mrd. €uro was achieved!

# Report KI - Kreth Immobilien Medien 01/2020



Investment Transaction Market Report 2019. Hotel, retail, office and logistics real estate and residential real estate.


Market Report 1. H 2019. To date, a transaction volume of approximately € 24.9 billion has been achieved. Berlin and Düsseldorf achieved a market share of 54%. Leaders were office real estate, followed by retail real estate, logistics real estate and commercial buildings.

Transaction volume in the year ◘ 2019 - € 24.9 billion uro so far ◘ 2018 - € 60.6 billion uro ◘ 2017 - € 57.3 billion uro

Transaction volume in asset classes:

◘ 1st place - offices = 49% ◘ 2nd place - retail = 20% ◘ 3rd place - logistics = 10% ◘ 4th place - hotel = 7% ◘ 5th place Other = 14%.

Top 3 buyer groups:

1st place = asset manager 28%

2nd place = open funds 18%

3rd place = AG's 12%

4th place = other 42%

# Brief Report KI - Kreth real estate Medien 07/2019

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  .

# Market Report Hotels 1.Half 2019.

# Market Report H1 2019. Hotels.

In the 1st H. In 2019, a transaction volume of € 1.6 billion was achieved so far. 46% of the transaction volume was invested in B and C locations; lack of business hotels could be responsible for the fact that less investment was made in the top 7 regions than before. On average, 3 and 4 star hotels have been the most sought after.

The main buyer groups in 2019 were open funds and asset managers with a transaction volume of € 1.1 billion. Project developments with long operator contracts have been completed to 40% with forward deals. The demand is greater than the market gives.

Transaction volume in the year:

1H. 2019 = € 1.6 billion so far

2018 = € 4.0 billion uro

2017 = € 4.2 billion uro

Buyer groups in 1H. 2019: Foreign investors invested around 37% of their market share in hotels, with the remainder staying at 63%.

Hotel Investments in Stars Groups:

1st place = 4 **** = 47%

2nd place = 3 *** = 33%

3rd place = boardinghouse = 10%

4th place = 5 ***** = 7%

5th place = 2 ** = 3%

Average top yields in the top 7 cities 1H. 2019:

1st place = Berlin = 4.50%

2nd place = Dusseldorf = 4.25%

3rd place = Cologne = 4.20%

4th place = Stuttgart = 4.00%

5th place = Hamburg = 3.75%

6th place = Frankfurt = 3.75%

7th place = Munich = 3.70%

# Brief Report KI - Kreth Immobilien Medien 07/2019




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               .


# Market Report Retail 2019.


# Market Report H1 2019. Retail / Retail.

Retail real estate reached a transaction volume of approximately € 4.8 billion in the first half of 2019. Foreign investors took over about 56% of their market share.

Transaction volume in € uro:

2019 = € 4.8 billion uro so far

2018 = € 9.8 billion uro

2017 = € 12 billion uro

The demand and transactions 1.H.2019 were at:

1st place = specialist stores, super and hypermarkets and discounters / SB stores 26%

2nd place = commercial buildings with 52% transaction volume

3rd place = Highstreet real estate and shopping center 22% (because of low returns)

The average gross prime yield in 2019 is 3.3%.

Top 3 buyer groups:

1st place = real estate AG`s = 34%

2nd place = open funds = 20%

3rd place = fund manager = 9%

Rest different buyers groups 37%.

# Brief report KI - Kreth real estate media 07/2019

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   .                                                                                                                                                                                                                                                                                                                                                                                              


# Market Report Commercial Property 2019.

# Office and logistics real estate 1st half 2019



# Market Report H1 2019. Office and logistics real estate.

So far, the German logistics market shows a decline of 22% in comparison to the previous year in 2019 and ranks third as an investment category.

Transaction volume in the year:

2019 - € 2.5bn so far in the first half of the year.

2018 - € 6.8 billion uro

2017 - € 8.7 billion uro

Top 3 buyer groups

1st place = fund manager 44%

2nd place = open funds 22%

3rd place = pension fund 8%

Rest of other buyer groups 26%

Type of usage of transaction volume:

1. Warehousing and logistics 69%

2. Industry and trade 31%

The gross prime yield averaged 4.35%.

Transaction volume in € uro:

Over € 100 million uro = 43%

50 - 100 million € uro = 14%

€ 30 - 50 million uro = 9%

10 - 30 million € uro = 22%

up to € 10 million uro = 12%

---------------------------------

Office real estate is repeatedly ranked # 1 on the transaction market in the 1st half. 2019. In fact, it was even up 8% on the previous year. Hamburg recorded a + 23%, while only Munich and Leipzig had a slight - retract. Frankfurt achieved a gain of 3% and Düsseldorf + 23%.

# Brief Report KI - Kreth Immobilien Medien 07/2019


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                .


# Market Report Residential Real Estate 2019

In 1.H 2019, a total transaction volume of approx. € 8.1 billion has been achieved so far. The numbers are similar to the previous year. 40% of the deals amounted to between € 20 - 100 million so far. Berlin was the absolute pioneer in transactions. The total transaction volume was in 2019 but so far back. Which was not due to a lack of demand, but that the market could not yet deliver the right objects. Respectively. these did not correspond positively to the test results / DD. Inventory portfolios and new construction projects are still in great demand.

Top 7 cities:

1st place Berlin + 36%

2nd place Düsseldorf - 13%

3rd place FaM - 30%

4th place Hamburg - 49%

5th place Cologne - 2%

6th place Munich - 44%

7th place Stuttgart + 11%

Asset classes:

1st place inventory portfolio = 62.9%

2nd place projects = 21.0%

3rd place refurbishment = 8.6%

4th place other = 7.5%

The second half of the year remains to be seen as the market continues to develop.

# Brief Report KI - Kreth Immobilien Medien 07/2019


KI - Kreth real estate gives you high-return investment real estate!