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Germany has been the world's leading commercial investor for the past decade.

German investors have invested over $151 billion in international real estate over the last decade, according to JLL's International Capital Group. From early 2004 to today, German commercial property investors have outpaced those from the United States, the Middle East, and Asia, making them the most successful and valuable source of cross-border money. property

During the last ten years, German companies have continued to invest outside of their home country, even as other investors have reduced cross-border investment. This puts them ahead of capital outflows from North America ($133 billion) and the United Kingdom ($100 billion).

Despite a widespread investment strategy that targets over 40 countries, German outbound investment is concentrated in developed markets in Western Europe and North America, accounting for 82 percent of total outbound investment. The majority of German capital flows (80%) have gone into core office products, with retail investment accounting for the remaining 13%.

"Despite being challenged by Norwegian, Chinese, and Canadian investors," says Matt Richards, JLL's Head of International Capital Group Europe, "we anticipate German investors will retain their international investment focus due to their existing presence in many global property markets."

German investors still have a stronghold on the domestic market. German capital has accounted for 52 percent of real estate investment in Germany on average since 2004. However, according to JLL's study of underbidder behavior, foreign demand is higher than buyer figures say. 65 percent of purchasers were domestic, according to data obtained from €1.3 billion in office transactions over €100 million in the last 18 months. Cross-border investors from the United States, Korea, the United Kingdom, China, the Czech Republic, Canada, France, and other countries made up 72 percent of the underbidders. The total amount of underbids was nearly €7 billion (see figure 10 & 11 below).

JLL's Head of Office Investment in Germany, Marcus Lütgering, says, "On a global scale, the amount of money invested in real estate continues to rise. We expect the cross-border flow of investment into Germany to increase as traditional European and North American investor groups, as well as newer entrants from Asia and the Middle East, begin to bid more vigorously and secure assets that would otherwise have gone to domestic owners."

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