Worldview International Beat

Worldview: Germany

Spring 2020

Germany remains the commercial real estate market powerhouse in Europe with its strongest quarter for any European country ever at the end of 2019, according to Real Capital Analytics. In 4Q2019 alone, investments in German commercial property reached nearly $37.4 billion, allowing the 2019 total to push past the $87 billion mark for the first time. The 2019 total represented a year-over-year increase of 3 percent. The United Kingdom came in second at $67.3 billion; France took the third spot with $47.7; and the Netherlands was a distant fourth with $25.2. 

It’s no surprise that Blackstone was far and away the largest single buyer in the European market, with nearly double the volume of number two, Union Investment. Rounding out the top 10 are Commerz Real, AXA Group, Swiss Life AM, Patrizia, Vonovia SE, BVK, Hana Financial, and ZBI. What’s interesting to note is that six of the top 10 investors in Europe in 2019 are headquartered in Germany. According to Senior Director of EMEA Analytics for Real Capital Analytics Tom Leahy, “This emphasizes the weight of German equity that is being dedicated to commercial real estate and also ties in with the fact that 2019 was a record year for Germany.”