Investment Market Berlin 2Q2019: Capital city posts record half year

Berlin, 04.07.2019Press release

Transaction volume Berlin 2Q2019 / Source: Grossmann & Berger GmbHNew record figures on the market for investment in commercial properties in Berlin: Germany’s capital city reported by far the highest volume of transactions ever seen in one half year - the total of some €4.83bn was nearly twice that posted in the prior year (€2.45bn). “The volume of transactions completed in the first half of 2019 has already surpassed the total for the first three quarters of 2018. It is quite possible that the final annual result will reach a new record mark of more than eight billion euros, thus topping the excellent total posted in 2018 and even the all-time high of 2015“, forecasts Holger Michaelis, managing director of Grossmann & Berger, a member of German Property Partners (GPP).

 

Market details:  

  • 14 trades in the 1st and 2nd quarters of 2019 each involved more than €100m, thus making a crucial contribution to the record total.
  • As in the prior year office buildings remained by far the most popular asset class, accounting for 75 % of the trading volume and a total of €3.6bn. Trades in this category include top transactions such as “Oberbaum City” and the “Pressehaus am Alex”. Mixed use assets followed in second place, with a share of 8 % of the total.
  • Once again, international investors were behind slightly over half of the volume traded. Year on year (65 %) however, their share has fallen.
  • Prime yields on offices and commercial buildings have settled at 2.9 %. Grossmann & Berger do not expect to see further compression in the immediate future.
  • Commercial properties in the central locations of the city accounted for 17 % of the volume of transactions. In the same period the previous year, this figure was 5 %.

 

Investment market | Berlin | 1st and 2nd quarters 2019 

Berlin investment market 

2019/Q1-2 

Transaction volume [€ millions] 

4,830

against prior yr [%]

+97

Share of trading in CBD [%]

17

Proportion of international investors [%] 

53

Prime net yield, office [%] 

2.90

against prior yr [percentage points]

-0.10

Prime net yield, commercial buildings [%] 

2.90

against prior yr [percentage points]

0

Prime net yield, logistics properties [%] 

4.20

against prior yr [percentage points]

-0.20

Strongest asset class 

Offices

Strongest asset class [%] 

75

 

 

 

 

Selected top transactions | investments in Berlin | 1st and 2nd quarters 2019

Project/property 

Street no.  

Sub-market 

Asset class 

Buyer/investor 

Vendor 

Purchase price* 

[approx. €m] 

“Oberbaum-City”, Rotherstrasse

Friedrichs-hain

Offices

Blackstone Group

UniCredit (HVB)

475

“Pressehaus am Alexanderplatz / New Podium”, Karl-Liebknecht-Strasse 27-29

Mitte

Offices

GEG German Real Estate Group

Tishman Speyer

365

“Zoom”, Joachimsthaler Strasse 4

Ku’damm plus side roads

Mixed use

Bayerische Versorgungskammer BVK (Pension fund)

Hines Immobilien GmbH

265

“The West Light Berlin”, Budapester Strasse 35
[2nd quarter]

Ku’damm plus side roads

Offices

Generali Deutschland Immobilien GmbH

Barings

200

“Carrée Seestrasse / Osram-Höfe”,
Seestrasse 64
[2nd quarter]

Periphery North

Offices

Cording Real Estate Group

Deutsche Real Estate AG

225

*The purchase prices stated are based on publicly available data, where none is available an estimate is made; 

 

An expanded review of the investment market in Berlin will soon be available in the Market Survey and may be downloaded from our website. 

Press contact


Corinna Fühner

Bleichenbrücke 9
D-20354 Hamburg
Phone +49 (0)40/350 80 2-588
Fax +49 (0)40/350 80 2-200
Email c.fuehner@grossmann-berger.de
Internet www.grossmann-berger.de

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