The amount of capital flowing into German indirect real estate vehicles increased by 76% in the first quarter of 2016, according to a report by Akselrod Consulting and Barkow Consulting.
The increase was driven by a 130% increase in net inflows to public open-end funds (OEFs) to €2.9 bn, while institutional OEFs increased their quarterly inflow by 57% to €2.6 bn.
The listed sector slowed for the second quarter in succession to €269 mln, 26% less than in the last quarter of 2015.
The aggregate figure for all indirect real estate vehicles was €5.7 bn, its highest level for an opening quarter since the crisis. Q1 was also the third best quarter on record for institutional OEFs.
The researchers also recorded a decline in deal volumes in Q1, with only one deal in three figures, a €171 mln placement of Buwog shares.
The report also said scarcity and low yields of prime assets were affecting the market, with three of the four large fund managers stopping distribution.
New data from Deutsche Bundesbank also showed closed-end funds attracted €144 mln of new capital in Q1, reflecting the dormant state of the market.
