• The German warehouse and logistics market continued the strong growth trend seen in H1 2018
• Locations outside the Top 5 markets dominate the market  with build-to-suit properties: The strong demand in the market cannot be serviced by existing stock alone. New builds are the main factor behind the dynamic development
• Short supply in conurbations ongoing: There is hardly any existing stock or any suitable land available in the Top 5 – lettings generally took place in the small to mid-size segments
• The decline in take-up in the Top 5 markets is particularly evident in Berlin and Munich respectively due to the failure of large-scale transactions to materialize.
• The economy is determining demand that remains sound and is driven by last-mile logistics for the booming e-commerce
• New record possible: Even if demand exceeds supply, a full-year result of between 6.5 and 7 million sq m is anticipated
• In desirable logistic clusters in years ahead, the supply-demand situation will become foreseeably more difficult

• Cyclical record volume on the office investment market
• Transaction volume at €20.14 billion – up five percent year on year
• Top 7 locations account for 82 percent of the transaction volume
• Average prime yield in the top locations drops to 3.10 percent
• Market share of international investors in decline

•Office space take-up of 441,500 sq m in the first nine months of 2018

•In the first three quarters, the centrally located submarkets of the Central Business District (CBD) accounted for 172,700 sq m of office space take-up, which corresponds to around 39% of the total take-up

•Due to the on-going positive development, the vacancy rate continued to decline and now stands at 8.1%

•The prime rent rose in the third quarter to 
 € 41.00 /sq m/month

•Around 409,200 sq m of office space is expected to be completed by the end of 2020; currently around 40% is still available

• Positive trend in consumer spending at a time of favourable economic conditions
• Retail sector reports strong turnover growth in both bricks-and-mortar and online segments
• Total sales area remains at the previous year’s level
• Superstores and drugstores are the most expansive operation types
• E-commerce is mainly a sales channel for the non-food sector
• Improved letting market over the first half of 2018
• Retail warehouses and retail parks are the most popular property types in the investment market
• Significant scarcity of product results in further pressure on prime yields
• Expert survey shows more optimistic view of bricks-and-mortar retail
• Greater focus on value-add and opportunistic investments

-  Industry 4.0, Big Data und Iot – growing requirements placed on the digital infrastructure

- The fourth Industrial Revolution – the growing need for data Centres

- IoT and Big Data will prompt a massive increase in the data volume in the future as well

- Requirements placed on computing power set to increase

- Great challenge: electricity costs

In 2017, the German hotel investment market achieved a transaction volume of €4.1 billion, with pressure to invest remaining high and fresh capital pouring into the real estate market.

• Germany remains a safe haven - the economic uptrend is set to continue in 2018.
• Prime yields for hotels in top locations will continue to be under pressure in 2018, with prime yields for core commercial proprety below 3.5%. 
• Both opportunities and challenges lie ahead due to a record high development pipeline.
• The hotel environment is changing, particularly in the field of digitalisation and innovation.

• Sustainable upswing on German real estate markets Thanks to economic boom
• Growth rate of GDP is set to rise by 2.2% (2017) - economic uptrend is set to continue at a vivid pace in 2018 as well and gain a broader footing
• Transaction volumes on the German commercial investment market 2017 exceeded the €57 bn mark; for 2018 we assume that despite limited supply the market dynamic will remain high
• Record in office letting take-up 2017 - veritable excess demand, reduced vacancy and moderate new build activity lead to further rising rents in 2018
• Overall German retail take-up volume in 2017 is anticipated to exceed the €500 bn threshold - demand of (inter-)national retailers still high, but more focused on locations and concepts - challenge of growing e-commerce
• Due to strong expanding online-trading, new logistics property types for the last mile are increasingly in discussion in urban locations
• Fiercer competition for core hotel products in prime locations is expected -  investors will focus more on economically strong major provincials, secondary cities and new property developments.
• Care homes establish themselves more firmly as an investment alternative – even for classic, conservative core investors
• Residential markets remain strained despite risen building activity - increasing rents and purchasing prices in the high-influx regions.

• The report serves as a basis of decision-making for the care home market – Analysis of the care market data of each federal state

• Importance of care homes is increasing

• Non-transparency and rigid regulations slow down the market

• International investors in particular are on the lookout for large-scale investment opportunities in Germany
• Currency profits as additional incentive to buy for international real estate investors
• The debt environment for property investments is expected to remain quite favorable in Germany despite the recent slight upward shift of the yield curve
• Due to positive exchange rate effects against the British Pound and the US Dollar denominated investors Euro-denominated real estate investment markets seem relatively attractive
• Similar effect should arise out of the Canadian Dollar and Australian Dollar denominated investors
• Additional positive effects thanks to lower financing costs

- Transaction volume of around €6.3 billion during 2016

- Excellent performance due mainly to large-scale single asset transactions

- Office properties were the strongest asset class with a share of 81%

- Prime yield fell to new record low of 4.00%

- 55% of transaction volume attributable to international investors