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German real estate investment volumes amounted to EUR 9.4 bn in the first half of 2012, a drop of about 15% on the year-earlier figure, according to new research published by Colliers International.

'It was already clear at the end of the first quarter that a lower number of large-volume transactions in comparison with the previous year was the predominant reason for this decline,' said Andreas Trumpp, head of research at Colliers International in Germany. 'Whilst sales in excess of EUR 100 mln achieved a volume of approximately EUR 5.2 bn in the first half of 2011, this amount was only EUR 3.1 bn this year,' he added.

Foreign investors accounted for roughly 35% of the transaction volume (EUR 3.3 bn), enabling them to keep their market share almost at the same level as in the previous year. At the same time, the share of portfolio sales declined to 23% in 2012 compared with 29% in the previous year. During the first six months of 2012, EUR 4.6 bn was invested in the six most important investment centres (Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Munich and Stuttgart). This corresponds to almost 49% of the total volume of transactions.

About EUR 4.5 bn - almost half the total H1 investment volume - was invested in office properties. This is approximately EUR 1.6 bn or 57% more than in the same period last year. 'The positive situation that has prevailed on the office letting market during the last 18 months as regards surface turnover and the reduction in vacant space are also reflected on the investment market,' Trumpp said.

Due to continued strong turnover in the markets for office space, investors are currently focussed on office real estate, which is also reflected in the large number of concrete negotiations on the sale of suitable properties. 'We therefore anticipate several transactions in this sector during the coming months of around, and in excess of, EUR 100 mln,' Trumpp said.