A new study by real estate consultancy JLL shows: Germany is the second most important residential investment market in the world after the US. By 2030, institutional investors worldwide could own more than 50 million housing units in Germany.
Germany has strengthened its position as the main European target market for residential investors. This is according to a current study by JLL, which analyses the global residential real estate investment market. Only the United States is still above Germany globally. This is according to the article by private banking magazin.
The study forecasts transactions worth US$1.4 trillion over the next five years. Germany plays a key role in this, offering investors special opportunities due to the size and maturity of the market.
‘With around four million residential units, the German housing market has the largest institutional housing portfolio in Europe,’ said Emma Rosser, head of EMEA housing investment research. The share of residential investment in total transaction volume averaged 29 per cent over the past five years. According to Rosser, there is still room for growth internationally.
Michael Bender, head of JLL Germany's residential division, sees further growth opportunities for the German market: ‘The German residential real estate market offers excellent prospects for investors due to its size, liquidity and continued excess demand in cities.’ JLL expects increasing transaction volumes and more diversified investment strategies in the coming years.
Large transactions characterise the German housing market
Large-scale transactions characterise the German market - almost half of the transaction volume over the past five years came from deals of more than US$100 million. Around 90 per cent of investments were in multifamily housing, but international investors are increasingly entering niche segments such as student housing.