++ NEWS 2023: A LOOK AT THE NEW TRANSACTION YEAR 2022 ++

The latest figures for the transaction volume in the year 2022 have been released. Despite the challenging circumstances, a transaction volume of approximately 54.1 billion euros was achieved. This represents a decrease of about 16% compared to the previous year 2021.

Here is an overview of the transaction figures from the past years: 

2022:  approximately 54.1  billion euros                                                                                                                                                                                                     2021:   approximately 64.1  billion euros                                                                                                                                                                                                   2020:  approximately 59.7 billion euros                                                                                                                                                                                                 2019:   approximately 73.4 billion euros                                                                                                                                                                                                   2018:   approximately 61.5  billion euros

The german investment market faced numerous challenges in the year 2022. In addition to the impact of the pandemic, there were also interest rate hikes and inflation. These factors significantly influenced the investment market and led to changes in purchasing behavior.

The prime yields averaged between approximately 3.0% and 4.8% in the year 2022.

#Summary report by the media from KI - Kreth real estate for the year 2023

#Market Report Annual Report 2022 in the Healthcare and Care Real Estate Sector

In the healthcare real estate sector, a transaction volume of approximately 3.3 billion euros was achieved in the year 2022, which was only slightly below the value of the previous year 2021. There was a minor decline, particularly in the senior housing and care property sector. This can be mainly attributed to the significant increase in inflation, higher interest rates, and the previous pandemic. The market requires time to recover from these influences.

Here is an overview of the transaction volumes in the past two years:                                                                                                                                         2022: approximately 3.3 billion euros                                                                                                                                                                                                   2021:  approximately 3.8 billion euros

#Summary report KI - Kreth real estate media 2023

#Market Report Annual Report 2022 in the Hotels Sector

The hotel market experienced a significant decline in transaction volume in the year 2022. The investment volume in the hotel sector amounted to only approximately 1.9 billion euros. This represents a decrease of around a quarter compared to the previous year 2021. Particularly in portfolio transactions, a low volume of only 231 million euros was recorded. Over the past 10 years, there has been a decline of approximately 77%.

Here is an overview of the transaction volumes in recent years:                                                                                                                                                         2022: approximately 1.9 billion  euros                                                                                                                                                                                                 2021:  approximately 2.6 billion euros                                                                                                                                                                                                 2020: approximately 1.3 billion  euros                                                                                                                                                                                                 2019:  approximately 5.0 billion euros                                                                                                                                                                                                   2018:  approximately 4.0 billion euros                                                                                                                                                                                                 2017:  approximately 4.2 billion  euros

When considering the buyer groups in hotel investment, the following ranking emerges: Special funds Corporates Family offices Investment asset managers Project developers Real estate companies Private investors

#Summary report KI - Kreth real estate media 2023

#Market Report Annual Report 2022 in the Retail Sector

The retail sector experienced a growth of +7% in the year 2022 compared to the previous year 2021. The market share of retail transactions amounted to 17%.

The transaction volume in the retail real estate sector reached approximately 9.4 billion euros in the year 2022. This represents an increase of approximately 7% compared to the previous year. The individual transactions of various buyer groups reached a total value of around 5.4 billion euros. The retail market continues to show stability, and a profitable outcome is expected for the year 2023.

Here is an overview of the transaction volumes in the retail sector in recent years:                                                                                                               2022: approximately 9.4 billion   euros                                                                                                                                                                                                 2021:  approximately 8.7 billion   euros                                                                                                                                                                                                   2020: approximately 12.3 billion  euros                                                                                                                                                                                                   2019:  approximately 10.1 billion  euros                                                                                                                                                                                                   2018:  approximately 9.8 billion   euros                                                                                                                                                                                                     2017:  approximately 12.0 billion  euros

Most popular buyer locations in a-cities: Leading the list is berlin as the most popular buyer location in a-cities, followed by munich in second place. hamburg takes the third position, followed by frankfurt in fourth place. Cologne, düsseldorf, and stuttgart occupy the fifth, sixth, and seventh positions.

#Summary report KI - Kreth real estate media 2023

#Market report annual report 2022: Office and logistics real estate

In the year 2022, the office real estate market experienced a decline of -28% compared to the previous year 2021, while the logistics real estate market showed stable growth of +3%.

The transaction volume in the office real estate sector amounted to approximately 22.3 billion euros in the year 2022, representing a decrease of about 28% compared to the previous year 2021. This value is approximately 10% below the 10-year average and accounts for a market share of 41%.

In the logistics real estate market, a transaction volume of 10.1 billion euros was achieved in the year 2022, representing a growth of +3%. This market share stands at 19%.

Transaction volume by year / euros: Office real estate:                                                                                                                                                                   2022 = approximately 22.3 billion euros                                                                                                                                                                                                 2021 = approximately 30.5 billion euros

Most popular buyer locations in A-cities for office real estate:                                                                                                                                                             1.  Berlin                                                                                                                                                                                                                                                               2. Hamburg                                                                                                                                                                                                                                                         3. Frankfurt                                                                                                                                                                                                                                                         4. Munich                                                                                                                                                                                                                                                           5. Düsseldorf                                                                                                                                                                                                                                                   6. Stuttgart                                                                                                                                                                                                                                                         7. Cologne

The transaction volume in the industrial and logistics real estate sector amounted to approximately 10.1 billion euros in the year 2022, compared to around 10.0 billion euros in the previous year 2021.

Transactions volume by year Industrial und Logistic real estate:                                                                                                                                                 2022 = approximately 10,1 billion euros                                                                                                                                                                                               2021 = approximately 10,0 billion euros

Most popular buyer locations in a-cities for logistics real estate:                                                                                                                                                         1.  Berlin                                                                                                                                                                                                                                                               2. Frankfurt                                                                                                                                                                                                                                                       3. Munich                                                                                                                                                                                                                                                             4. Hamburg                                                                                                                                                                                                                                                         5. Leipzig                                                                                                                                                                                                                                                             6. Düsseldorf                                                                                                                                                                                                                                                     7. Cologne

A strong upward trend is forecasted for the industrial and logistics real estate sector in the year 2023, driven by online commerce and the demand for production halls.

#Summary report KI - Kreth real estate media 2023

#Market Report Annual Report 2022: Residential Real Estate

In the residential real estate sector, the transaction volume in the year 2022 amounted to approximately 13.1 billion euros. This represents a decrease of 74% compared to the previous year 2021. The residential real estate market was affected by significantly higher interest rates and a weakened economy, leading to a decline in purchasing behavior due to inflation.

Transaction volume by year / euros:                                                                                                                                                                                                         2022 = approximately 13.1 billion euros                                                                                                                                                                                                   2021 = approximately 49.0 billion euros

Investment by groups in the year 2022: Development projects Existing older properties Existing portfolios Others

Forecast for 2023: The market is expected to recover, and the trend should start to rise again. There is a particular demand for existing portfolios with at least 30 residential units, as well as residential and commercial buildings. Construction and development projects also continue to be sought after.

#Summary report KI - Kreth real estate media 2023