According to Savills, the transaction volume in residential real estate* in the 1st half of the current year amounted to a good EUR 3.2 billion, an increase of 8% compared to the first half of the previous year. However, the 10-year average was missed by 59%. In the last twelve months, Savills has registered about 140 transactions, an increase of about a third compared to the same period last year. The prime yield remained stable at 3.6% and thus also corresponded to the previous year’s figure.
Marco Högl, Director and Head of Residential Capital Markets at Savills in Germany, comments on the market as follows: “The residential investment market has now largely digested the rise in interest rates of recent years, and market players have adapted to the new environment. In a comparison of the types of use, housing is currently the most sought-after by investors. This is reflected in many sales processes, in which competition among bidders is noticeably increasing again. The focus of investors is predominantly on existing properties in good locations, often with value-enhancement-oriented strategies. We have also been observing growing interest in the opportunistic segment and in properties with development potential for several months.”
Student housing complexes accounted for EUR 104 million in the first half of the year, which corresponds to more than doubling the transaction volume compared to the same period last year. In view of the large volume of supply on the market, increasing transaction activity can be expected both in the student housing segment and in the residential real estate market as a whole.
*Only properties with at least 50 residential units
