Commercial property transactions in Germany reached €59bn ($63bn) last year, beating the UK, which saw €57bn of deals, for the first time in a decade, according to data from Real Capital Analytics. The German government has been pushing hard on tax avoidance and aggressive financial reporting since it came into power in 2005. Demand has outstripped supply in major European cities, pushing investors towards smaller property markets; Italy, Sweden, the Netherlands and Finland all recorded record high transaction volumes in 2016. Industrial logistics warehouses are becoming more attractive as consumers change shopping habits, while investors are also taking on more development risk in search of better returns.
Commercial property transactions in Germany reached €59bn ($63bn) last year, beating the UK, which saw €57bn of deals, for the first time in a decade, according to data from Real Capital Analytics. Sales across European markets were down 21% on average, with Germany 19% lower. Demand has outstripped supply in major European cities, pushing investors towards smaller property markets; Italy, Sweden, the Netherlands and Finland all recorded record high transaction volumes in 2016. Industrial logistics warehouses are becoming more attractive as consumers change shopping habits, while investors are also taking on more development risk in search of better returns.