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Germany's Residential Property Market Smashes all Transaction Records

The residential property market of Germany is doing better than ever – and a look at the latest market reports suggests as much. One of their findings is that the highest sales total of all times was achieved as early as the end of the nine-month period. The real estate consultancy firm CBRE registered a transaction volume of 18.2 billion euros for housing packages and housing estates of 50 residential units or more. This implies an increase by 84 percent year on year. Savills arrived at an even larger transaction total of 18.4 billion euros (a year-on-year increase by 81 percent).

Transaction Activity Paced by Listed Residential Property Companies

During the first nine months of 2015, the number of traded units exceeded the mark of 263,000 and the total at the end of the prior-year period by 41 percent. That said, the number of transactions increased at a far slower pace. During the first three months of 2014, there were altogether 194 transactions, whereas the total at the end of the same period 2015 was 212. The action on the residential property market was defined by the major listed residential property companies. They accounted for more than 69 percent of the entire transaction volume. According to CBRE, the listed companies transacted 194 portfolio deals, adding up to around 279,000 residential units with nearly 17.4 million square metres of residential floor area. The analyst statements show that German investor activity on the real estate market also increased considerably. German investors accounted for nearly 88 percent of the traded volume, up from 75 percent last year.

Experts Predict a Year-End Sales Total of 30 Billion Euros

In response to keen demand, prices continued to push up as well. During the first three quarters of this year, the average price tag per residential unit was close to 70,000 euros, according to Savills, a year-on-year increase by 29 percent. Calculations by CBRE determined a square-metre price of 1,437 euros for Q3 alone. The upward trend of the residential property market is expected to continue beyond the end of this year. With a view to the persistently strong demand and pending takeovers, Savills expects the year-end transaction total to approach the market 30 billion euros.