• Transaction volume in the first quarter 2020 up 110% to €4.6bn year-on-year
• Several takeovers and large-scale portfolio transactions determine the market
• Shopping center yields continue their uptrend

• The first quarter of 2020 saw €8.17bn invested in Germany’s office market. Compared with the first quarter of 2019, this marks an increase of 44%
• 80% of the transaction volume in the first quarter of 2020 was attributable to the Top 7 cities. Berlin proved to be the strongest office investment market with 31% of the overall volume, followed by Frankfurt (20%), Düsseldorf (10%), Munich (9%) and Hamburg (7%)
• The prime yields in the Top 7 markets averaged 2.89%, reflecting a decline of 0.3 %-points compared with the first quarter of 2019
• Portfolio transactions were much more prominent in the first quarter and took a share of 35%, which was due to a series of large-scale portfolio deals
• In tandem with the high proportion of portfolio transactions, the share of international investors in the market rose by 10 %-points to 49% compared with Q1 19

• In many places a severe shortage of free existing stock and available land prevented higher take-up. The strong momentum is particularly remarkable considering the slight slowdown that German industry experienced in the past year. Driven by strong domestic demand, retail and e-commerce, had an offsetting effect.
• The sentiment of German companies has meanwhile picked up again. Accordingly, the demand for warehouse and logistics space is set to remain strong.
• As some decision processes often take a great deal of time, it is possible that the effect of the weaker economy in 2019 on take-up will only filter through over the course of this year.
• Rents in general developed at a stable level, with rental growth in the top cities and regions as opposed to build-to-suit developments in particular for which low rents continued to be agreed due to the low yield levels.
• The momentum on the warehouse and logistics market will be ongoing in 2020. A decisive factor will be whether the economy will continue its recovery, which will also keep the level of demand high. The following will then continue to apply: finding land suitable for logistics and existing free space will act as a constraint.

• Steady growth in bricks-and-mortar and online sales
• Food segment growing faster than non-food segment
• Sales areas of physical shops increasing slightly following stagnation in the previous year
• Local supply retailers and discounters are the most active tenants
• Online retail is growing at a single-digit rate and making little progress in the food segment
• Retail property investors are being very selective in their investment decisions
• Focus of investment activity lies outside the top locations
• Rising yields across some individual asset classes
• Expert survey: retail parks are the most popular asset class among retailers and investors
• Expert survey: investors expect yields to remain stable or decline

In 2019, the German hotel real estate market remains very dynamic with a continued demand surplus. The hotel transaction volume in the German hotel investment market stood at €1.64bn in H1 2019, down 14% from the prior-year period. The lack of product on the market is restricting the investment volume and results in a further decline in yields in prime locations. Consequently, investors increasingly buy in B and C locations.

The report provides an overview of:

• European and German hotel real estate market
• Key performance indicators of the German top cities
• Investment volume and prime yields
• Recent transactions
• Future supply and outlook

Report on the significance of investment costs in nursing homes - a differentiated discussion by different authors::

• Introduction to investment costs and their regulation
• The facts of the case about cross-subsidising
• Investment costs as a determinant of value
• Adjustments of investment costs in practice
• The importance of investment costs - the macro view
• The international investor's perspective
• A look into the future & political demands