Campus

German market for apartments booms

According to real estate organization Savills, investments in the German housing market increased significantly in 2015. Investments rose by one third over 2014 and now stand at 22.5 billion Euros.
Furthermore Savills reports that 255 apartment packages, which combine more than one unit changed ownership. 24 of all businesses contained 1000 or more apartments.  A total number of 319,500 apartments were traded, 33 per cent more than in 2014.
The analysis also revealed an increase in prices. The average price of an apartment in 2014 was  56,000 Euros, whereas today the average stands at 70,000 Euros.
Regional distribution turned up a few surprises. Almost two thirds of apartments were  purchased in Berlin. After Berlin and Hamburg, most apartments were traded in centres such as Dresden, Leipzig and Hannover.
“Investors are increasingly purchasing apartment packages away from large cities“, said Matthias Pink, director of research at Savills. The reason or this is two-fold. Firstly top sites, are in great demand and secondly, investors have  deep-seated faith in the German real-estate market. Dax-listed real estate companies dominate both buying and selling, with  Vonovia as premier purchaser with 150,000 properties followed by Deutsche Wohnen, LEG Immobilien and Alder Real Estate.