Investment market Germany - ProPerty rePort 2019 - research - BNP Paribas Real Estate
Page content transcription
If your browser does not render page correctly, please read the page content below
Contents Investment Market Germany 2019 Contents Executive summary....................................................................................................................................... 3 Overview of the German investment markets........................................................................................ 5 Berlin................................................................................................................................................................ 11 Cologne............................................................................................................................................................. 13 Düsseldorf........................................................................................................................................................ 15 Frankfurt.......................................................................................................................................................... 17 Hamburg.......................................................................................................................................................... 19 Leipzig............................................................................................................................................................... 21 Munich.............................................................................................................................................................. 23 Stuttgart........................................................................................................................................................... 25 Imprint Publisher and copyright: BNP Paribas Real Estate GmbH Title: TS Tessuto S.à.r.l Prepared by: BNP Paribas Real Estate Consult GmbH Status: January 2019 Realisation: KD1 design agency, Cologne Circulation: 700 carbon neutral natureOffice.com | DE-140-234158 print production All rights reserved. This Property Report is protected in its entirety by copyright. No part of this publication may be reproduced, translated, transmitted, or stored in a retrieval system in any form or by any means, without the prior permission in writing of BNP Paribas Real Estate GmbH. The statements, notifications and forecasts provided here correspond to our estimations at the time when this report was prepared and can change without notice. The data come from various sources which we consider reliable but whose validity, correctness or exactness we cannot guarantee. Explicitly, this report does not represent a recommendation of any kind, nor should it be regarded as forming a basis for making any decisions regarding investment or letting or renting property or premises. BNP Paribas Real Estate can accept no liability whatsoever for any information contained or statements made herein.
Investment Market Germany 2019 Executive Summary Executive summary Threshold barrier breached: new record turnover of just over 61.5 bn € After three very good years, each with a transaction volume of well over 50 bn €, the 60 bn € threshold was broken for the first time in 2018, as expected, and a new all-time high was set. This extraordinary result was primarily due to investments in single properties, which almost pulverised the record set last year. Office properties remain the most popular asset class ▸▸ The market was dominated by office investments (almost 29.7 bn €). Only in 2007 was the volume slightly higher, but this was mainly driven by portfolio transactions. In 2018, on the other hand, single office buildings were the main focus of buyers (over 27.1 bn €). A total of 65 single transactions in the three-digit million range were recorded. ▸▸ S econd place went to retail properties, which at 11.2 bn € are slightly above the ten-year average. ▸▸ Logistics investments with 7.2 bn € remain on course for success. ▸▸ H otels have also continued the soaring trend that began about four years ago (little over 4 bn €). Half of turnover is accounted for by major deals ▸▸ Contracts in the three-digit million euro range account for a good half of the result. ▸▸ F oreign investors account for just under 41 % of turnover, continuing the trend of a slightly declining share at the end of the year. ▸▸ The A-locations, which account for some 38.65 bn € or around 63 % of total turnover, were the focus of particular attention. Frankfurt is the undisputed leader with 10.23 bn €, resulting in a German location exceeding the 10 billion euro threshold for the first time. Prices continue to rise ▸▸ As expected, premium transactions were concluded in all A-locations in the last quarter, with the result that prime net yields for office properties fell once again. ▸▸ The logistics markets developed even more dynamically. In the most important metropolitan areas, they fell by a further 45 basis points to 4.05 % last year. ▸▸ The net prime yields for retail / office buildings in city centre locations, on the other hand, have remained stable and average 3.07 %.
Hamburg Berlin Düsseldorf Leipzig Cologne Frankfurt Stuttgart Munich Investment locations in Germany Methodology The transactions covered by BNP Paribas Real Estate in this the data of the relevant officially appointed expert commit- instance between companies belonging to the same survey and the resultant total transaction volume do not tees. The differences vary between individual cities. There business group. And these surveys also contain many represent the entire commercial investment market. The sur- are several reasons for this: small deals between private persons, such as people vey takes into account only those investments on which BNP ▸▸ The committees differ widely in the way they assign with adjacent sites. Paribas Real Estate has assured information and which in- transactions to market segments and also in the depth ▸▸ Even the use of professional research methods cannot volve “professional players”, in the widest sense of this term. of their analyses. Some operate only with catch-all prevent the proportion of transactions surveyed by BNP Since the investment market is highly sensitive, with deals of- terms such as “commercial property”, others go into Paribas Real Estate from varying between cities or be- ten being kept confidential, the possibility cannot be excluded far more detail. In individual cases, the surveys are of a tween one year and the next. Whether or not the neces- that some transactions were not revealed and are therefore quite general nature. sary information is available always depends on the mar- not included in this survey. In view of all this, the transaction ▸▸ The data compiled by these committees cover all ket players involved and on the wider general situation. volumes depicted here generally deviate from those shown in transactions. These include “internal transactions”, for Often, confidentiality is a contractual condition for a sale.
Investment Market Germany 2019 Overview Overview of the German investment markets Sound barrier breached: This extraordinary result is primarily due to investments in new record turnover of just over 61.5 bn € individual properties, which, at about 46 bn €, almost pul After three very good years, each with a transaction volume verised the record figure of just under 39 bn € set last year. of well over 50 bn €, the 60 bn € threshold was broken for the This is also illustrated by the fact that the ten-year average first time in 2018, as expected, and a new all-time high was was exceeded by an impressive 70 %. As the number of trans- set. The extraordinary result of the previous year was thus actions recorded was relatively stable compared to the previ- again exceeded by just under 6 %. Despite lowered GDP fore- ous year, the increase is mainly attributable to an increasing casts for the next two years and deteriorating sentiment indi- number of large transactions. On the other hand, the impor- cators, investor interest in German real estate remains high. tance of portfolio deals continued to decline. At a little above Although the growth rates are slightly declining, the economy 15.5 bn €, the result in this market segment was 20 % lower also has good medium-term prospects and solid growth po- than in the previous year. With a share of 25 % of total turno- tential. In addition, unemployment will continue to fall ac- ver, this also represents its lowest level in the last five years. cording to current forecasts. The occupier markets are also However, this is not due to a decline in investor interest, but benefiting from this, which is impressively underlined by the to an insufficient supply. Especially in the segment of large- current take-up in office space, which at around 4 million m² scale core packages there are too few products, so that the represents the second-best result of all time. The scenario of high demand cannot be met. high and stable demand coupled with noticeably rising rents remains intact and offers potential for value appreciation in In addition to investments in commercial properties, a turnover the coming years. of 16.3 bn € was recorded for larger residential investments. Overview of the investment markets Investment volume Change 2017 2018 2017-2018 (million €) (million €) (%) Single investments 38,856 46,032 18.5 - Share of A-locations (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart) 25,046 33,009 31.8 Portfolios 19,363 15,504 -19.9 - Share of A-locations (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart) 5,890 5,643 -4.2 Commercial properties total 58,219 61,536 5.7 Residential portfolios 14,001 16,285 16.3 Investment volume total 72,221 77,820 7.8 © BNP Paribas Real Estate GmbH, December 31, 2018 Office properties remain the most popular major deals were registered alone. Prominent examples are The market was clearly dominated by office investments, the sale of the Omniturm, the Gallileo or the “Bürohaus an which contributed almost 29.7 bn € or 48 % to the over- der Alten Oper”. But also in Munich (15), Berlin (12) and all result. Only in 2007 was the volume slightly higher, but Hamburg (7) a whole series of large-unit office transactions this was mainly driven by large portfolios. In 2018, on the were carried out. other hand, individual office buildings, which accounted for more than 27.1 bn €, were the main focus of buyers. A total Following in second place are retail properties, which con- of 65 individual sales in the three-digit million range were tribute 11.2 bn € (18 %) to turnover. This is slightly above recorded. The absolute front-runner is Frankfurt, where 19 the ten-year average, but at the same time 19 % below the 4|5
previous year’s result. The largest investments were made in second-best result of all time. Only in the previous year did discount stores / supermarkets (4.40 bn €), which continue to some very large portfolio sales contribute to even better turn- be very popular with investors. The same applies to inner-city over. Only in terms of single properties (3.19 bn €) was it even retail / office buildings in the absolute prime locations, which possible to set a new record. Hotels have also continued the will continue to be indispensable for the brand building of high-altitude flight begun about four years ago, although at large retailers in the future and also make a high contribution some 4 bn € (6.5 %) they are around 4 % below the previous to turnover with 2.73 bn €. On the other hand, investors are year’s figure. However, the same applies here as for logistics uncertain about the future development of shopping centres. objects: While a new all-time high of 3.2 bn € was achieved in single transactions, turnover in the portfolio segment was Logistics investments, on the other hand, are still on the road significantly lower due to supply factors. to success, reaching 7.2 bn € (12 %) and thus achieving the Overview of investment in commercial properties Single investments Portfolios Total Share 2017 2018 2017 2018 2017 2018 2017 2018 Type of property (million €) (million €) (million €) (million €) (million €) (million €) (%) (%) Office 20,189 27,139 3,750 2,545 23,938 29,685 41.1 48.2 Retail 7,767 6,283 6,042 4,922 13,809 11,205 23.7 18.2 Logistics 2,956 3,193 6,224 4,009 9,179 7,202 15.8 11.7 Hotel 3,104 3,201 1,083 821 4,187 4,022 7.2 6.5 Others 4,841 6,215 2,264 3,207 7,105 9,422 12.2 15.4 Total 38,856 46,032 19,363 15,504 58,219 61,536 100.0 100.0 © BNP Paribas Real Estate GmbH, December 31, 2018 Many different investor types active resent a large number of different end investors who often As in recent years, the market has been characterised by a invest indirectly in property through these vehicles. The same great diversity. This becomes particularly clear in the analysis applies in principle to investment managers, who come third of the buyer groups involved in investment turnover. Regard- with 10 %. In between, on the silver rank, are listed real estate less of the risk profile, preferred investment volume or pre- companies / REITs, which reach just under 13 %. In addition, ferred asset class, the German real estate markets offer all in- pension funds (8.5 %), equity / real estate funds and property vestors attractive investment opportunities due to their good developers with almost 8 % each as well as insurance com- and stable fundamental data. As a result, only three types of panies and property firms (both responsible for around 6 %) investors account for double-digit turnover shares. The top made larger contributions of between 5 and 9 %. The eight performers were special-purpose funds with 22 %, which rep- largest buyer groups thus account for only 81 % of turnover.
Investment Market Germany 2019 Overview Investments by buyer group 2017 in %, total 58,219 million € 2018 in %, total 61,536 million € Special-purpose funds 16.1 Special-purpose funds 22.4 Investment / asset managers 14.2 Listed RE companies / REITs 12.9 Equity / real estate funds 10.6 Investment / asset managers 10.0 Listed RE companies / REITs 8.3 Pension funds 8.5 Property developers 7.6 Equity / real estate funds 7.9 © BNP Paribas Real Estate GmbH, December 31, 2018 Pension funds 7.5 Property developers 7.6 Insurance companies 5.9 Insurance companies 6.1 Property firms 5.9 Property firms 5.8 Family offices 4.8 Open-ended funds 4.1 Sovereign funds 4.4 Corporates 3.8 Open-ended funds 4.2 Family offices 2.7 Private investors 3.8 Closed-end funds 2.6 Corporates 2.5 Private investors 2.5 Other investors 4.2 Other investors 3.1 0 5 10 15 20 0 5 10 15 20 25 half of turnover by major deals second place is taken by the second-largest class between 50 Major deals in the three-digit million euro range were able to and 100 m €, which, at just under 19 %, is at the same level slightly increase the already very high share of the previous as in 2017. In relative terms, only marginal changes can be year and contribute nearly half to the transaction turnover, observed in the other size classes, too. Basically, all market thus slightly exceeding the long-term average. As expected, segments benefited from the strong demand. Investments by € category 31,138 million € in 2017, total 58,219 million € million € in 2018, total 61,536 million € 28,181 30,000 25,000 © BNP Paribas Real Estate GmbH, December 31, 2018 20,000 11,636 10,878 15,000 8,769 7,964 7,610 6,937 10,000 3,455 3,188 5,000 0 < 10 million € 10-< 25 million € 25-< 50 million € 50-< 100 million € ≥ 100 million € Relative share of foreign investors In this respect, they currently have slightly fewer investment slightly declining opportunities, as the supply of high-quality and large-scale Foreign investors account for just under 41 % of turnover. portfolios is currently not sufficient to fully meet the con- This means that the trend of the first three quarters con- tinuing high demand. However, the fact that Germany re- tinued towards the end of the year, with the proportion of mains a preferred investment location for them is shown foreign buyers declining somewhat in relative terms. This is by the fact that, in absolute terms, they once again gener- not at least due to the decline in portfolio turnover, as they ated high turnover of around 25 bn €, roughly at the aver- are generally very active in this field and have high shares. age level of the last five years. European buyers were again 6|7
the most active, accounting for a share of 20 %. The three result. Asian investors are almost on the same level with most important countries were United Kingdom (5 %), France 7 %. Fourth place went to buyers from the Middle East, who (nearly 4 %) and Austria (4 %). As expected, North American reached about 4 %. investors followed in second place, contributing 8 % to the Investments by origin of capital Germany Europe North America Middle East Asia Others Ø Germany 100 % 4 5 6 10 7 10 6 12 4 15 90 % 11 14 4 16 20 8 11 80 % 26 16 15 26 © BNP Paribas Real Estate GmbH, December 31, 2018 23 20 70 % 21 21 22 60 % 50 % 86 40 % 63 66 67 60 57 59 30 % 53 50 52 20 % 10 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Overview and market data of the major locations Second place went to Berlin with 7.43 bn €, the third-best re- The A-locations (Berlin, Cologne, Düsseldorf, Frankfurt, Ham- sult of all time. In the capital in particular, however, demand burg, Munich, Stuttgart), which account for a little over continues to exceed supply. Munich is only marginally beyond 38.65 bn €, or around 63 % of the overall result, were particu- the all-time high of 2007, where turnover increased by 28 % larly the focus of attention. This not only exceeded the previ- to 6.67 bn €. New record results are achieved in Hamburg, ous year’s result by 25 %, but also set a new record. Frankfurt with 5.9 bn € (+66 %) which is only the second time with over is the undisputed leader. At 10.23 bn €, a German location 5 bn €, Düsseldorf with 3.9 bn € (+21 %) and Stuttgart with exceeded the 10 bn € threshold for the first time. The new 2.54 bn € (+81 %). In Cologne, 1.98 bn € is quoted, so that the record is an impressive 36 % above the previous year’s result. city only just fails to reach the 2 billion euro hurdle. Development of investments in the A-locations Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart in million € 2018 38,653 2017 30,936 2016 29,556 2015 31,475 © BNP Paribas Real Estate GmbH, December 31, 2018 2014 23,151 2013 18,970 2012 15,416 2011 12,671 2010 11,593 2009 6,148 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Investment Market Germany 2019 Overview Overview of investments in the A-locations Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart in million € in 2017, total 30,936 million € in million € in 2018, total 38,653 million € 7,920 Berlin 7,429 2,118 Cologne 1,981 3,233 Düsseldorf 3,907 © BNP Paribas Real Estate GmbH, December 31, 2018 7,502 Frankfurt 10,229 3,558 Hamburg 5,895 5,200 Munich 6,667 1,405 Stuttgart 2,543 0 2,000 4,000 6,000 8,000 10,000 12,000 Prices continue to rise The logistics markets developed even more dynamically. The extent to which investor interest continues to be strong, Here, too, the increased demand, in conjunction with a limited and that the further development of the major locations in supply of high-quality core products, has further increased particular is viewed positively, is also reflected in the devel- investor competition and thus led to a further decline in net opment of yields. As expected, premium transactions were prime yields. In the most important conurbations (Berlin, concluded in all A-locations in the last quarter, with the re- Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart), sult that net prime yields for office properties fell once again they fell by a further 45 basis points last year to now 4.05 %. everywhere. The undisputed leader is now Berlin with 2.70 %, Even in Leipzig, where prices are generally somewhat lower, closely followed by Munich with 2.80 %. But also in Frankfurt, the prime net yield has developed comparably and has now where 2.95 % is currently quoted, the 3 % mark was broken for reached 4.50 %. the first time. Hamburg is no longer far away from this either and now stands at 3.05 %. New lows have also been reached The net prime yields for retail / office buildings in city centre in Düsseldorf and Cologne, where the value is now 3.15 %. locations, on the other hand, have remained stable and av- The same value is quoted in Stuttgart, which means that the erage 3.07 %. Berlin and Munich are the leaders with 2.90 % Swabian metropolis is at the same level as the two Rhineland each, followed by Hamburg with 3.00 % and Frankfurt with heavyweights for the first time. 3.10 %. Cologne, Düsseldorf and Stuttgart are just behind with Development of net prime yields * Ø A-locations (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart) Office* Retail* Logistics* Shopping centres Specialised discount stores Specialist retail centres 8.00 % 7.00 % © BNP Paribas Real Estate GmbH, December 31, 2018 6.00 % 5.00 % 4.00 % 3.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8|9
3.20 % each. Prime yields for shopping centres also remained commodities would be more likely to be affected by global unchanged at 4.00 %, although initial upward trends are economic downturns. And even in the case of safe government emerging here. By contrast, there was a decline to 4.50 % in bonds, yield jumps cannot be expected in an uncertain envi- retail parks, which remained in strong demand, and to 5.30 % ronment with many risk factors. For this reason, rising em- in individual discount stores. In contrast to shopping centres, ployment, further moderate economic growth and the increas- yield compression for discount stores is still continuing. ing importance of the major metropolises also speak in favour of strong investment markets in the coming year. Against this background, all indications make it likely for the 50 billion Outlook for the investment markets euro threshold to be significantly exceeded again and that a At first glance, the German investment markets may appear transaction volume of between 55 and 60 bn € appears re- to be in surprisingly good shape, but this ultimately reflects alistic. For yields, stabilisation at the levels achieved is the the tough conditions that continue to show in favour of real most likely scenario. However, it cannot be ruled out that in- estate. Even though uncertainties about international trouble creasing global uncertainty will further intensify competition spots have increased, which is of course also reflected in a for prime properties, which could maintain the pressure on decline in sentiment indicators, the measurable influencing yields, especially in light of the fact that no serious interest factors are the decisive criterion for investors. This is all the rate hikes are expected in the euro zone in 2019. more true as possible alternative investments, e.g. equities or
Investment Market Germany 2019 Berlin Berlin OFFER PREVENTS EVEN BETTER RESULT Investments 2009 to 2018 in Berlin With a transaction volume of 7.43 bn €, the Berlin invest- in million € ment market confirms the outstanding results of recent 8,283 7,920 9,000 years. At the same time, it broke through the 7 billion euro 7,429 mark for the third time in its history and achieved the third- 8,000 best result ever. Although turnover in 2017 was about 6 % 7,000 5,436 higher, the fact that around 56 % more was invested than © BNP Paribas Real Estate GmbH, December 31, 2018 6,000 the 10-year average speaks for itself. In a nationwide com- 4,276 5,000 3,848 parison, the capital ranks second behind Frankfurt, where 3,589 3,173 the 10.23 bn € hurdle was exceeded for the first time in a 4,000 2,335 German city. In principle, however, the investment volume 3,000 1,348 could have been even higher in Berlin – assuming a larger 2,000 offering. Against this background, it is not surprising that 1,000 price levels have continued to rise. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SEGMENTS ABOVE 50 M € PARTICULARLY STRONG To a certain extent, the price increase can also be seen Investments by € category in Berlin in the growing importance of large-volume transactions. in % Since 2011, the share of property transactions starting at 100 50 m € has grown to just under 80 %. Once again, the high- est turnover was achieved with properties above 100 m € (3.5 bn € or 48 %), which in the previous year generated 80 47.6 55.8 even more turnover with the sale of the Sony Center for ≥100 million € over 1 bn € (56 %). After the front-runner Frankfurt, Berlin © BNP Paribas Real Estate GmbH, 31. Dezember 2018 50-
TWO GROUPS OF BUYERS AT THE TOP Investments by buyer group in Berlin The buy side has traditionally been broadly based, with in %, foreign investment share 50.1 % two groups having set themselves somewhat apart in 2018: special-purpose funds are responsible for most transactions Special-purpose funds 26.9 and thus also secure first place in turnover (27 %) ahead Investment / asset managers 18.7 of investment / asset managers (19 %). However, the latter Listed RE companies / REITs 9.3 Pension funds 8.7 ultimately conceals a large number of other buyer groups © BNP Paribas Real Estate GmbH, December 31, 2018 Property developers 5.5 with different investment strategies. Listed real estate com- Insurance companies 5.4 panies / REITs and pension funds each account for around Property firms 4.9 9 %. As in previous years, Berlin is disproportionately popu- Equity / real estate funds 4.7 lar with foreign buyers with a share of 50 %. Nationwide, Open-ended funds 4.3 on the other hand, their share is just 41 %. The spectrum Banks 2.6 is also broad among foreign investors: around 19 % of the Private investors 1.9 volume is accounted for by European buyers, 16 % by the Other investors 7.1 North American region and a remarkable 10 % by investors 0 5 10 15 20 25 30 from the Middle East. Investments by origin of capital in Berlin PRIME YIELD FOR OFFICES CONTINUES TO DECLINE in % Strong demand led to a further decline in yields in the final 3.4 1.6 quarter. The net prime yield for offices fell by a further 20 basis points to 2.70 %, making Berlin the most expensive 9.9 location in Germany, ahead of Munich (2.80 %). This means Germany that office properties at their peak are listed lower than Europe retail / office properties in prime locations, which still note 16.0 North America at 2.90 %. This clearly reflects expectations regarding the 49.9 Middle East further development of office rents: top rents rose by 9 % Asia over the course of the year and average rents by more than Others 15 %. However, logistics yields have also fallen sharply 19.2 once again in the last three months, reaching 4.05 % (-45 basis points) in all major locations. © BNP Paribas Real Estate GmbH, December 31, 2018 BERLIN REMAINS HOTSPOT The investment pressure in the Berlin market is still very high. In view of the flourishing occupier markets, this is Net prime yields by type of property in Berlin quite understandable. In addition, hardly any other city in Office Retail Logistics Germany is said to have a similar development potential. Against this backdrop, 2019 is likely to be another excit- 10.00 % ing investment year. However, the continuing shortage of 9.00 % supply could once again make the capital the number one 8.00 % investment location. Following the substantial decline in © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % yields in recent months, stabilisation at the level achieved 6.00 % seems the most likely scenario in the near future. 5.00 % 4.00 % 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Cologne Cologne ANOTHER VERY PLEASING RESULT IN 2018 Investments 2009 to 2018 in Cologne In 2018, the Cologne investment market repeated the very in million € successful results of the last three years and missed the to- 2,500 2,180 2,118 tal volume of 2.0 bn € by a very narrow margin. The third- 1,981 best result of all times confirms the high level at which the 1,897 market has levelled off since the record year of 2015 and 2,000 accordingly exceeding the 10-year average by a marvellous © BNP Paribas Real Estate GmbH, December 31, 2018 1,335 46 %, although the previous year’s volume was missed 1,500 1,095 1,083 by 6 %. It is noteworthy that no fewer than five transac- tions exceeded the 100 m € mark, which compensated for 842 1,000 the comparatively low number of registered transactions 565 520 (55). In addition to the complete sale of Kaufhof as part 500 of the merger of Karstadt and Kaufhof and the purchase of the Maritim Hotel on Heumarkt, the acquisition of the “Cologneo I” on Deutz-Mülheimer Strasse also influenced 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 the result. At around 36 m €, the average volume per deal is therefore also at a new record level. Investments by € category in Cologne in % BIG DEALS DOMINATE THE ACTION 100 The distribution of the volume by size class is consequently 17.5 led by the category over 100 m €, which accounts for 44 % of the turnover. This is followed by the segment of 50-100 m € 80 44.4 at a distance, which achieved a total of 510 m € (26 %), an ≥100 million € 33.8 overall very good result, but nevertheless fell short of the © BNP Paribas Real Estate GmbH, December 31, 2018 50-
special-purpose FUNDS CLEARLY TAKE THE LEAD Investments by buyer group in Cologne Special-purpose funds (almost 45 %) take over the top of in %, foreign investment share 56.6 % the buyer groups in the cathedral city by a large margin. Not only are they responsible for some of the biggest deals Special-purpose funds 44.7 of the year, but they also contribute most of the deals (14) Property firms 17.3 across different asset classes. Property firms came in sec- Property developers 9.6 Insurance companies 8.7 ond with around 340 m € (a good 17 %). Both achieved © BNP Paribas Real Estate GmbH, December 31, 2018 Investment / asset managers 6.2 record results and put the property developers (almost Family offices 4.0 10 %) in third place. Around 1.1 bn € – the second-highest Listed RE companies / REITs 2.2 value after 2007 – comes from abroad. The share of almost Pension funds 2.1 57 % is also the highest of all A-locations. Equity / real estate funds 1.7 Open-ended funds 1.2 Private investors 1.0 YIELDS FOR OFFICE AND LOGISTICS Other investors 1.3 CONTINUE TO PLUMMET 0 10 20 30 40 50 Due to continued high demand and a persistently tight sup- ply, prices for office and logistics properties rose again in 2018. Yields in both asset classes continued to come un- Investments by origin of capital in Cologne der pressure, falling by 40 (offices) and 45 (logistics) ba- in % sis points respectively. All property types are now at a new record level, for example 4.05 % for logistics proper- 1.7 ties. Offices now generate only 3.15 % and, as in most A- 5.6 4.4 locations, the yield for offices in Cologne is now lower than Germany 6.0 for retail / office buildings for the first time. Only highstreet Europe properties recorded a stabilisation of yields at the record 43.4 North America level of the previous year (3.20 %). Middle East Asia Others 38.9 2019 CAN BE ANOTHER SUCCESSFUL YEAR For the fourth time in a row, the Cologne investment mar- ket is at a level of around 2 bn € and is still on the road to success. However, the comparatively low number of trans- actions and the high significance of the major deals, espe- © BNP Paribas Real Estate GmbH, December 31, 2018 cially in 2018, make it clear that this result is not be taken for granted. Larger investment opportunities are just as necessary as a sufficient supply of assets in the mid-million Net prime yields by type of property in Cologne range for these kinds of spheres to be advanced to again in Office Retail Logistics 2019. Demand from Germany and abroad for a wide variety of property types continues to exist, and even in an increas- 10.00 % ingly uncertain geopolitical situation, real estate at German 9.00 % prime locations is likely to remain a popular investment al- 8.00 % ternative. Cologne should also benefit from this. © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % 6.00 % 5.00 % 4.00 % 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Düsseldorf Düsseldorf DüSSELDORF MARKET WITH BRILLIANT RESULT Investments 2009 bis 2018 in Düsseldorf In 2018, the Düsseldorf investment market is taking an- in million € 3,907 other step up its record chase: with a transaction volume 4,000 of 3.9 bn €, the previous record value of the year before is 3,233 3,177 being pulverised (+21 %). Individual deals accounted for al- 3,500 most 2.8 bn € or 71 % of total turnover, which impressively 3,000 underscores Düsseldorf’s attractiveness as an investment © BNP Paribas Real Estate GmbH, December 31, 2018 2,345 2,161 2,078 location. Interestingly, with around 120 registered deals, 2,500 slightly fewer properties were traded than in the previous 2,000 year. On the other hand, a new all-time high was achieved 1,188 1,500 in terms of average turnover per transaction. Portfolios in- 954 832 793 cluded on a pro rata basis also made a significant contribu- 1,000 tion to this, generating total turnover of 1.1 bn €. This is the 500 third-highest figure ever measured and an increase of good two thirds over the previous year’s result. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 TRANSACTIONS OVER 100 M € DOMINATE Investments by € category in Düsseldorf As expected, the distribution of turnover by size class shows in % a clear dominance of major transactions over 100 m €, 100 which account for a marvellous 1.6 bn € or 41 % of total turnover. By way of comparison, the figure for the previ- 26.4 ous year was less than 900 m €. But the middle price class 80 40.9 has a significant contribution towards the total turnover as ≥100 million € well. The size classes between 25 and 100 m € together 22.1 © BNP Paribas Real Estate GmbH, December 31, 2018 50-
SPECIAL-PURPOSE FUNDS DOMINANT BUYERS Investments by buyer group in Düsseldorf The investor ranking is led by the special-purpose funds in %, foreign investment share 37.7 % and the equity / real estate funds, which together account for some 38 % of the transaction volume. The invest- Special-purpose funds 21.0 ment / asset managers, who show a striking preference Equity / real estate funds 17.2 for large-volume deals starting at 100 m €, also achieve a Investment / asset managers 10.6 Property firms 9.1 double-digit share of turnover. All other groups of buyers © BNP Paribas Real Estate GmbH, December 31, 2018 Property developers 7.3 together contribute about 51 % to the overall result. This Pension funds 7.0 shows that the supply of commercial real estate in Düssel- Listed RE companies / REITs 6.5 dorf meets a broadly diversified demand and that there are Public sector 5.9 no dependencies on specific buyer groups. Regarding the Open-ended funds 5.0 origin of the investors, it is noticeable that the share of for- Family offices 3.3 eign investors is comparatively low at 38 %. Investors from Non-profit institutions 2.7 other European countries (17 %) and North America (10 %) Other investors 4.4 were particularly keen to buy. 0 5 10 15 20 25 YIELD COMPRESSION CONTINUES TO GROW Investments by origin of capital in Düsseldorf The ongoing low-interest policy of the central banks and in % the continuing investment urgency for institutional inves- 1.5 3.2 tors are maintaining the pressure on yields in all asset classes. In the office segment in particular, broad demand 6.3 meets scarce supply, resulting in a 35 basis point decline Germany in the net prime yield to 3.15 %. The situation is similar for 10.1 Europe logistics, which at their peak stand at a yield of 4.05 %, 45 North America basis points less than a year ago. However, the sharp de- Middle East cline in yields for office and logistics properties is not only 16.6 Asia 62.3 due to the tense competitive environment, but also reflects Others continued positive rent expectations. The situation is some- what different for inner-city retail/office buildings: here, the net prime yield developed sideways at a low level of 3.20 %. © BNP Paribas Real Estate GmbH, December 31, 2018 OUTLOOK FOR 2019 REMAINS POSITIVE Towards the end of the year, there were increasing signs of a slight slowdown in the economy and the turnaround Net prime yields by type of property in Düsseldorf in interest rates in the USA was also casting its shadow Office Retail Logistics ahead. The overall economic environment remains stable, the overall trend towards urbanisation will continue, and 10.00 % there should be no significant changes in investors’ invest- 9.00 % ment preferences or the lack of alternative investment op- 8.00 % portunities. To this extent, turnover above the 3 billion euro © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % mark in 2019 with a simultaneous stabilisation of yields at 6.00 % a low level also appears to be realistic. 5.00 % 4.00 % 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Frankfurt Frankfurt INVESTMENT TURNOVER REACHES NEW DIMENSION Investments 2009 to 2018 in Frankfurt With a transaction volume of 10.23 bn €, the Frankfurt in million € investment market has not only set a new all-time high, 12,500 but has also broken through a barrier: never before has 10,229 an annual turnover in the double-digit billion range been achieved in a German city. So it is no surprise that the 10,000 7,502 banking metropolis leads the nationwide rankings ahead of © BNP Paribas Real Estate GmbH, December 31, 2018 6,692 Berlin and Munich. The already very good result of the pre- 6,016 7,500 5,318 vious year was again increased by more than 36 %. Many large-volume sales of office properties are also responsible 3,893 5,000 3,230 for this result. These include the Omniturm, the Gallileo, 2,967 the Junghof Plaza, the Eurotheum and the ”Bürohaus an 1,883 2,500 der Alten Oper”. This result shows that large professional 744 investors in particular are counting on a positive develop- ment of the office market. The assessment that Frankfurt 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 will benefit from a possible Brexit is also likely to play a certain role. Investments by € category in Frankfurt in % CLEAR DOMINANCE OF THE MAJOR DEALS 100 The traditionally important major deals in Frankfurt have once again noticeably increased their significance in 2018. Transactions in the three-digit million range accounted for 80 45.5 some two thirds of the transaction volume, 22 percentage ≥100 million € 67.7 points more than in the previous year. In absolute terms © BNP Paribas Real Estate GmbH, December 31, 2018 50-
FIVE BUYER GROUPS WITH DOUBLE-DIGIT SHARES Investments by buyer group in Frankfurt The diversification of the turnover amongst different inves- in %, foreign investment share 45.0 % tors underlines that there is a broad consensus regarding the expected positive market development in Frankfurt. A Pension funds 15.3 total of five groups of buyers have a double-digit share of Listed RE companies / REITs 14.0 turnover, which is equivalent to an investment volume of at Insurance companies 12.4 Open-ended funds 10.4 least 1 bn €. In first place are pension funds with 15 %, fol- © BNP Paribas Real Estate GmbH, December 31, 2018 Special-purpose funds 10.1 lowed by listed real estate companies / REITs with 14 % and Equity / real estate funds 9.1 insurance companies with some 12 %. In addition, open- Closed-end funds 6.8 ended funds and special-purpose funds each contribute Investment / asset managers 5.5 around 10 %. Above all, the great commitment of core in- Property developers 4.3 vestors with a long-term focus is pleasing, and can be seen Family offices 3.7 as a sign of confidence in the banking metropolis. The share Property firms 3.1 of foreign investors is 45 %, slightly lower than in recent Other investors 5.3 years. Asian buyers have invested the most (17 %). 0 5 10 15 25 YIELDS FURTHER DECREASED IN SOME CASES Investments by origin of capital in Frankfurt The good market performance in conjunction with the posi- in % tive outlook for Frankfurt has led to a further decline in net 1.5 prime yields for some asset classes. For office properties, they fell below the 3 % mark for the first time in the last 7.5 quarter of 2018 and currently stand at 2.95 %. Frankfurt 8.4 Germany now belongs together with Berlin and Munich to the Ger- Europe man trio with an office prime yield of just below the 3 % 10.6 North America mark. This development was supported by foreseeable in- Middle East 55.0 creases in rental prices and thus also in value. Top yields Asia for logistics have also continued to fall and stand now at 17.0 Others 4.05 %. The corresponding value of 3.10 % for inner-city re- tail / office buildings remained unchanged. FRANKFURT IN THE FOCUS OF INVESTORS 2019 © BNP Paribas Real Estate GmbH, December 31, 2018 From today’s perspective, there is every reason to believe that Frankfurt will continue to be the focus of buyers’ at- tention in 2019 and that strong demand from both German Net prime yields by type of property in Frankfurt and international investors is to be expected. However, the Office Retail Logistics probability of another double-digit billion euro turnover is relatively low. This is due to the fact that a large number of 10.00 % large office properties were sold last year. Nevertheless, a 9.00 % transaction volume is developing that should be at least in 8.00 % the range of the five-year average. In connection with the © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % foreseeable rent increases and a narrowing supply, it can- 6.00 % not be ruled out that competition for premium properties 5.00 % will continue to increase and that the pressure on yields 4.00 % will continue. 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Hamburg Hamburg NEW RECORD VOLUME Investments 2009 to 2018 in Hamburg The Hamburg investment market achieved an absolute re- in million € 5,895 cord volume in 2018. With 5.90 bn €, more was invested 6,000 than ever before. Compared with the previous year, this 4,742 represents an increase of 66 %, and the ten-year average 5,000 was even exceeded by an impressive 83 %. Only in the boom 3,983 3,824 year of 2007 was the 5 billion euro mark exceeded before. 3,558 © BNP Paribas Real Estate GmbH, December 31, 2018 4,000 In contrast to 2007, however, primarily individual deals 2,674 made this exceptionally high result possible. The propor- 2,187 3,000 2,164 tion of portfolio sales included only reached 16 % (2007: 1,998 63 %). After a strong start, the market really grew consid- 2,000 1,098 erably in the second half of the year, and in the last two quarters alone generated a higher volume than in 2017 as 1,000 a whole. In a nationwide comparison, Hamburg ranks fourth behind Frankfurt (10.23 bn €), Berlin (7.43 bn €) and Mu- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 nich (6.67 bn €). Investments by € category in Hamburg HIGH NUMBER OF LARGE VOLUME DEALS in % The extraordinarily high number of large-volume transac- 100 tions played a significant role for this strong result. Alone 16 properties in the three-digit million range changed 29.0 hands. First and foremost is the sale of the Springer 80 45.0 Quartier in the first quarter, which had an impact of ap- ≥100 million € proximately 400 m €. The size class distribution reflects © BNP Paribas Real Estate GmbH, December 31, 2018 50-
special-purpose FUNDS INVEST THE MOST Investments by buyer group in Hamburg The distribution of the volume among the buyer groups is led in %, foreign investment share 26.3 % by special-purpose funds, which were very active in Ham- burg as well as nationwide. With some 24 %, they are at the Special-purpose funds 24.1 top of the ranking by a wide margin. Pension funds acquired Pension funds 13.9 only a small number of large-volume properties, reach- Listed RE companies / REITs 12.8 Property developers 9.1 ing just under 14 %. Listed real estate companies / REITs © BNP Paribas Real Estate GmbH, December 31, 2018 Investment / asset managers 8.6 also account for a double-digit percentage (13 %). Property Insurance companies 7.2 developers secured numerous properties and potential de- Equity / real estate funds 6.7 velopment sites and follow with approx. 9 %. The propor- Private investors 6.2 tion of foreign investors is some 26 %, well below the high Corporates 5.2 level of the previous year (46 %). In the other major invest- Property firms 3.5 ment locations, much higher values of around 35 % to 57 % Non-profit institutions 0.7 are achieved. European investors account for 16 %, North Other investors 2.0 American investors for 7 % and Asian investors for just be- 0 5 10 15 20 25 low 3 %. Investments by origin of capital in Hamburg OFFICE YIELDS ALMOST AT RETAIL HIGHSTREET LEVEL in % After the net prime yield for office buildings had stabilised 2.8 in the last few quarters, it fell again by 10 basis points at the end of the year and now stands at 3.05 %. This almost 7.1 reaches the same level as the prime yield for office / retail properties, which remain unchanged at 3.00 %. This makes 16.4 Germany Hamburg one of the most expensive retail locations in Europe Germany after Berlin and Munich (2.90 % each). Prices for North America first-class logistics also continued to rise as a result of the Asia significant increase in demand. With 4.05 %, the prime yield has fallen by a total of 45 basis points in several steps over 73.7 the last twelve months. PERSPECTIVES © BNP Paribas Real Estate GmbH, December 31, 2018 The Hamburg investment market achieved a brilliant result in 2018, which was also made possible by a whole series of deals in the three-digit million range. For the current Net prime yields by type of property in Hamburg year, the overall signs remain very good. Provided that the Office Retail Logistics economic environment is not disturbed by external influ- ences, a further positive development can be expected. As 10.00 % investment alternatives are still scarce and rental markets 9.00 % are flourishing, demand on the real estate markets should 8.00 % remain high in all segments. The order of magnitude of the © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % overall result for the hanseatic city also depends to a large 6.00 % extent on a sufficient supply of large-volume products. 5.00 % Generally, however, a clearly above-average investment 4.00 % volume is expected again. 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Leipzig Leipzig OFFER LIMITS INVESTMENT TURNOVER Investments 2009 to 2018 in Leipzig In 2018, the Leipzig investment market was not quite able in million € 1,158 to match the high dynamics of previous years and, with a 1,200 transaction volume of 800 m €, recorded a decline of some 1,017 21 % compared with the previous year. A look at the long- 919 1,000 term average, which was exceeded by around 35 %, shows 800 just how good the result is. The decline should therefore not © BNP Paribas Real Estate GmbH, December 31, 2018 800 be seen as an indication of a lack of investor interest. On the 549 contrary, the supply side – especially in the large-volume 516 516 600 core segment – is so limited that the high demand could not be met by far. With 58 registered sales, not only were 400 256 noticeably fewer properties traded than in the past three 101 years, but the average purchase volume also fell by 13 % 200 90 to 14 m €. Among the most significant sales were two indi- vidual retail deals: in Leipzig-Grünau the 40,000 m² Allee- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Center was sold, in Großpösna the Pösna Park (57,000 m²). Investments by € category in Leipzig DECLINING SHARE OF MAJOR DEALS in % The main reason for the lower investment volume is the 100 significantly lower result from major deals. The share of the size class above 50 m € fell by 12 percentage points 31.1 to 31 %. All other categories, on the other hand, recorded 80 43.1 percentage growth, resulting in a very balanced picture in Leipzig with two-digit values in all size segments. In © BNP Paribas Real Estate GmbH, December 31, 2018 ≥50 million € 60 particular, the two medium-sized volume classes of 10 to 25-
WIDE RANGE OF ACTIVE BUYERS Investments by buyer group in Leipzig The list of buyers shows a relatively wide dispersion across in %, foreign investment share 37.2 % the different investors. A total of five buyer groups reach double-digit turnover shares and together generate over Special-purpose funds 21.8 73 % of the volume. Special-purpose funds, which account Investment / asset managers 16.4 for around 22 % of turnover, have taken the lead. Invest- Property developers 12.9 Equity / real estate funds 12.3 ment managers (16 %) and the property developers already © BNP Paribas Real Estate GmbH, December 31, 2018 Property firms 10.0 mentioned (just under 13 %) rank behind on the other two Corporates 8.0 podiums. The top quintet is completed by equity / real es- Listed RE companies / REITs 6.3 tate funds (approx. 12 %) and property firms (10 %). At 37 %, Family offices 3.4 the proportion of foreign investors is the lowest value since Pension funds 3.3 2013 and is also slightly lower than in the rest of Germany Private investors 2.8 (around 41 %). Closed-end funds 1.6 Other investors 1.2 0 5 10 15 20 25 YIELDS HAVE CONTINUED TO DECLINE The continuing favourable financing conditions with a lim- ited supply and at the same time high investor interest also Investments by origin of capital in Leipzig lead to a noticeable yield compression in the trade fair city. in % Nevertheless, the Saxon metropolis has a moderate price 2.6 1.5 level compared to the A-locations. While the prime yield for retail / office buildings in the best locations remained stable at 4.20 %, it fell by 30 basis points to 4.30 % for premium properties in the office segment over the past 12 months. Germany In the logistics sector, it fell even more sharply to 4.50 %. 33.1 Europe The continuing yield compression speaks for the increasing Middle East maturity and stability of the Leipzig investment market. Asia 62.8 GOOD PROSPECTS FOR 2019 The consistently high transaction volumes of the last four years – all of which exceeded the long-term average – as well as the overall broad buyer structure speak for them- © BNP Paribas Real Estate GmbH, December 31, 2018 selves: Leipzig has established itself as an investment lo- cation. In addition to the well-frequented city centre and the dynamic office market, the Leipzig logistics region, as Net prime yields by type of property in Leipzig a growing transport hub, also has good framework condi- Office Retail Logistics tions. In terms of portfolio diversification in particular, the trade fair city can be a worthwhile alternative to other Ger- 10.00 % man cities thanks to its more attractive yield opportuni- 9.00 % ties. Strong demand is therefore also foreseeable for 2019. 8.00 % Whether this is reflected in a repeatedly disproportionately © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % high investment volume essentially depends on the supply 6.00 % side. This could once again turn out to be a bottleneck and 5.00 % thus maintain the pressure on yields. 4.00 % 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Investment Market Germany 2019 Munich Munich NEW RECORD TURNOVER WITH SINGLE DEALS Investments 2009 to 2018 in Munich The investment market continued to accelerate in the last in million € quarter and generated a turnover of 6.67 bn € for 2018 as 6,667 6,373 7,000 a whole. The previous year’s result was again exceeded by 6,001 28 %, the ten-year average even by 52 %. Even the record 5,347 5,200 6,000 level of 2007, which is primarily attributable to large port- 4,740 folio transactions, was only marginally missed by a few 5,000 © BNP Paribas Real Estate GmbH, December 31, 2018 3,624 million euros. In terms of individual sales, which account 4,000 for 5.81 bn €, the Bavarian state capital has set a new re- 2,877 cord. In a nationwide comparison, Munich ranks third be- 3,000 1,720 hind Frankfurt and Berlin. The unusually good result was 1,327 2,000 due not least to many large-volume transactions in the three-digit million euro range, of which a total of 20 were 1,000 registered. Among the most important are the sales of the Correo Quarter, the Atlas and the Oscar. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 GOOD DEMAND IN ALL SIZE CLASSES Investments by € category in Munich Although just under 52 % of the investment volume is ac- in % counted for by contracts worth more than 100 m €, which is 100 somewhat above average for Munich, the other size classes have also benefited from the strong demand. This applies, for example, to properties between 50 and 100 m €, which 80 41.3 51.9 increased their share to some 24 % and generated almost ≥100 million € 500 m € more turnover in absolute terms than in the previ- © BNP Paribas Real Estate GmbH, December 31, 2018 50-
MANY DIFFERENT BUYERS ACTIVE Investments by buyer group in Munich Traditionally, the Munich investment market has been in %, foreign investment share 34.7 % the focus of attention for many different investors, which was again confirmed in 2018. A total of four buyer groups Special-purpose funds 16.5 achieved double-digit shares. At 16.5 %, special-purpose Property developers 15.6 funds ranked first, followed by property developers at just Pension funds 14.0 Investment / asset managers 12.4 under 16 %. This shows that the shortage of space is lead- © BNP Paribas Real Estate GmbH, December 31, 2018 Insurance companies 8.2 ing to a significant increase in development planning, es- Banks 5.9 pecially in the office market. The management quartet is Open-ended funds 5.5 completed by pension funds (14 %) and investment manag- Family offices 5.2 ers (slightly over 12 %). In addition, insurance companies Equity / real estate funds 4.9 still contribute a good 8 %. At just under 35 %, the propor- Private investors 3.7 tion of foreign buyers is slightly higher than in the previous Closed-end funds 2.8 year, but once again confirms the usually low proportion of Other investors 5.3 international investors compared with the rest of Germany. 0 5 10 15 20 PRICES HAVE INCREASED AGAIN Investments by origin of capital in Munich Together with Berlin, Munich has long established itself as in % the most expensive location, which also reflects the confi- 0.6 2.2 dence of investors. Due to the very good take-up of space in the office markets, competition for core properties has 5.6 continued to increase and net prime yields have fallen once 7.8 Germany again. At the end of 2018 they were quoted at 2.80 % for Europe office buildings. Only in Berlin is the comparative value 10 North America basis points lower. The development of logistics properties 18.5 Middle East was similarly dynamic. Due to high demand, prime yields in Asia 65.3 this segment fell to 4.05 %. On the other hand the yield for Others inner-city retail / office buildings stands at 2.9 %, dropping even lower in individual cases. DEMAND REMAINS HIGH IN 2019 AS WELL © BNP Paribas Real Estate GmbH, December 31, 2018 The very good overall economic situation, a growing popu- lation and foreseeable rent increases are the general condi- tions that will make Munich one of the most sought-after Net prime yields by type of property in Munich destinations for both German and international investors Office Retail Logistics in 2019. Even though the transaction volume is ultimately largely determined by the available offer, there are many 10.00 % indications that the result will again be above average. 9.00 % The probability of exceeding the 6 billion euro mark for the 8.00 % fourth time in five years is very high from today’s perspec- © BNP Paribas Real Estate GmbH, December 31, 2018 7.00 % tive. It remains to be seen whether yields have bottomed 6.00 % out or, in some cases, remain under pressure, depending 5.00 % on external factors such as possible interest rate hikes or 4.00 % increasing uncertainty due to global crises. 3.00 % 2.00 % 1.00 % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
You can also read
NEXT SLIDES ... Cancel