German residential real estate portfolio deals reached 鈧�9.7 bn in the first three months of 2015, up 76% year-on-year from 鈧�5.5 bn in 2014, according to the latest report issued by Savills.
German residential real estate portfolio deals reached 鈧�9.7 bn in the first three months of 2015, up 76% year-on-year from 鈧�5.5 bn in 2014, according to the latest report issued by Savills.
The broker predicts that transaction volumes will remain strong as a result of strong merger & acquisition activities in the sector.
'The appetite of institutional investors for German residential property continues to be strong but can no longer be satisfied by direct acquisitions due to a lack of product. We will therefore see a shift towards more merger and acquisition activity in order for residential portfolio activity to take place,' commented Karsten Nemecek, managing director of corporate finance and valuation at Savills.
The acquisition of Gagfah by Deutsche Annington accounted for 80% of the transaction volume achieved in Q1 2015. Apart from this sale, another 56 residential portfolios were sold throughout the quarter, four more than a year ago. However, the number of transactions comprising at least 1,000 units fell from 10 to four, largely as a result of low supply.
Dresden was the strongest-performing city with 35,000 units sold. Berlin follows in second place with 24,000 units and Hamburg ranks third with 11,000 units sold.
