• Just under 40% of the office space expected to be completed in Berlin by the end of 2021 will consist of refurbishments
• For historical reasons, Berlin has a lot of catching up to do when it comes to modernizing its office space and renovating it to make it more energy-efficient
• Redevelopments are pre-leased for the most part and add less speculative space to the total stock
• Weighted average rents are more dynamic in refurbishments than on the market as a whole - tenants continue to be willing to pay for high-quality refurbished space

• The German economy is set for a strong and sustained recovery from summer 2021. The labor market is once again very dynamic. The dominant theme is the shortage of skilled workers, although wage pressure is not leading to any inflationary tendencies.
• The German real estate investment market is considered a safe haven and is gaining momentum over the course of the year. Risk-averse investments continue to be in high demand and ESG criteria will significantly influence future investments.
• The markets in Germany's top 5 office centers are still in a recovery phase. Confidence in the future of the office as a place to work and meet is returning, but tenants' demands on the space are also rising.
• Following the long-awaited opening, the retail sector is showing positive development trends. Promising signals are also coming from the retail leasing and investment market.
• The pandemic is acting as a catalyst for the predominantly positive developments on the industrial and logistics real estate market. Both the leasing and investment markets suggest a continuation of the previous year's strong performance. 
• After a difficult year in 2020, the climate on the German hotel market is gradually brightening. From autumn onwards, the city hotel industry can expect significantly more guests and an increasing number of hotel transactions on the investment market.
• Residential construction completions are rising, yet excess demand remains high and demands on policymakers persist. Investor interest in German residential real estate and especially in platforms is persistently high and rising continuously.
• Sociodemographic changes in Germany and robust fundamental data are the main drivers for the continued dynamic development on the investment market for healthcare properties. The scarce product supply is leading to a permanently existing demand overhang.

• Commercial investment market heading for a strong year despite Corona
• German commercial real estate remains in high demand and Germany continues to be considered a safe investment haven
• Commercial transaction volume of €23.5bn in the first half of the year
• Logistics properties benefit from the Corona pandemic; office properties remain the strongest asset class
• Prime yields across asset classes stable or with slight further decline
• International investors with lower activity due to travel restrictions - stronger momentum expected from easing measures
• Outlook: Full-year results could be above ten-year average at over €50bn

• Short supply in the retail investment market; focus on grocery-anchored properties

• Transaction volume declines to EUR 3.5 billion in the first six months

• Excess demand: food market yields dip to 3.9 percent

• Investors waiting for prime shopping center rents to find their new level

Certain optimism is increasingly spreading among national and international real estate investors. For example, 54% and 59% of the German and European investors surveyed by CBRE intend to invest significantly more in 2021 than in the Corona year 2020. In this context, the German real estate market is becoming increasingly important, confirming its reputation as a 'safe haven' and reflecting the particular stability of the market in an international comparison, even in the current crisis and especially afterwards.

This year's survey also provides other important insights:

• Both national and international investors rate the prospects for a quick recovery of the real estate investment market after the pandemic in Germany best. With Berlin, Frankfurt, Hamburg and Munich, four German metropolises are among the top ten most attractive European cities for real estate investments.

• Despite the decentralisationand flexibilisationof workplace strategies accelerated by the pandemic, investors continue to prefer the office asset class, followed by residential and logistics.

• Market participants are focusing their portfolio strategy even more on core and core plus properties, indicating a pronounced risk aversion in the current market environment and a preference for yield stability and income security.

• The majority of German investors (69%) do not plan to invest outside Europe.

• Almost all investors expect price reductions for shopping centres and hotel properties.

• COVID-19 has increased investor focus on tenant credit and ESG criteria.

The CBRE Investor Intentions Survey 2021 was conducted between 2 December 2020 and 19 January 2021. From Germany, 286 investors participated in the survey, which asked respondents a series of questions about their acquisition plans and their preferred strategies for sectors and markets in 2021.

The market for data centers in Germany

• Growth drivers and growth potential in Germany
• Use of data centers
• Construction and location requirements of data centers
• Different types of data centers
• The data center market in Germany
• Typical types of contracts and transactions
• Future development of the German data center market

• Healthcare properties are on their way out of being a niche asset class, but price transparency is still fairly limited and subject to quite different perceptions

• In the light of a persistent ultra-low interest rate environment and the relatively cyclical independence of healthcare related real estate assets, we observe an ongoing accelerated repricing especially of care homes

• Therefore, we estimate that prime yields for care homes to decline by another 25 base points to 4.25% in Q1 2020

• Given the asset class inherent fundamentals and increased liquidity, yields for healthcare real estate will move closer to the values of other well-capitalized, more core-ish real estate asset classes (e.g. hotels, which are currently priced at 3.75%)

• In the second quarter, take-up itself was as much as six percent above the running average of all second quarters over the last decade
• In effect, the Corona pandemic has had very little impact on the market. There was neither a huge demand for space nor has the crisis caused demand to slump. Inasmuch, the current situation is distinctly different from the last crisis in 2008 and 2009 when demand dropped off notably
• In the medium term, we expect the demand for warehouse facilities to rise. This development will be driven by an even stronger future realignment of the global supply chain, various re-/near-shoring strategies, the introduction of buffer storage and the rise of e-commerce
• There were no changes in terms of rents. The rental level is stable as demand has not slumped, there are no massive vacancies, and space is still in short supply
• Given the way things are developing in the wake of the Corona pandemic, and the signs of economic recovery, we are assuming a sound full-year result. Significantly more than six million sq m is likely to be achieved on the industrial and logistics real estate market this year as well

• Office take-up drops 8% to 520,500 sq m compared with 2018
• Vacancy in a downtrend; vacancy rate at 2.4% at year end
• Weighted average rent for premium space rises 11 % to €31.50 /sq m/month
• Transaction volume of €4.3bn on the commercial investment market below year-earlier figure
• Net initial yield in the office segment slips 25 basis points to 2.75%