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Housing Market: Germany: Difference between revisions
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==== <big>Transaction Volume</big> ==== | ==== <big>Transaction Volume</big> ==== | ||
[[File:Screenshot 2024-03-26 101258.png|center|thumb|491x491px|file:///C:/Users/maga-/Downloads/bnppre-residential-investment-market-germany-2023q4_0.pdf]] | [[File:Screenshot 2024-03-26 101258.png|center|thumb|491x491px|file:///C:/Users/maga-/Downloads/bnppre-residential-investment-market-germany-2023q4_0.pdf]] | ||
===== Q1 2024 ===== | |||
[[File:Screenshot 2024-04-22 111125.png|center|thumb|610x610px|<ref>https://www.savills.com/research_articles/255800/355212-0#:~:text=In%20the%20first%20quarter%20of,of%20the%20last%20five%20years.</ref>]] | |||
[[File:Screenshot 2024-04-22 111050.png|center|thumb|617x617px]] | |||
In the first quarter of 2024, residential properties in Germany were traded for around €755m (transactions of at least 50 units). This was around 60% less than the quarterly average of the previous year (see Graph below) and even 86% less than the quarterly average of the last five years. <ref>https://www.savills.com/research_articles/255800/355212-0#:~:text=In%20the%20first%20quarter%20of,of%20the%20last%20five%20years.</ref> | |||
* With fewer than twenty transactions in the first quarter, transaction activity fell to its lowest level since we began recording it in 2009 | |||
* Prices continue to receive a tailwind from the very good fundamental data on the letting market from the perspective of landlords and investors. Although the influx of refugees from Ukraine has slowed, net immigration remained high last year. '''The birth deficit is likely to be more than offset by immigration in the coming years and demand for housing will continue to rise.''' | |||
* As completion figures are heading towards only 150,000 new residential units per year nationwide, there is currently '''no sign of an easing on the letting market on the horizon. The consequence is likely to be a further decline in vacancy rates and rising market rents''' | |||
* Buyers are often regional players who are familiar with the market. It is currently the core segment in which many successful transaction processes can be observed. | |||
* The prime net initial yield for multi-family properties was 3.6% at the end of the first quarter of 2024, remaining stable for the second quarter in a row. | |||
[[File:Screenshot 2024-04-22 111202.png|center|thumb|566x566px|<ref>https://www.savills.com/research_articles/255800/355212-0#:~:text=In%20the%20first%20quarter%20of,of%20the%20last%20five%20years.</ref>]] | |||
===== '''As of February 2024''' ===== | |||
There were no signs of such a turnaround in February either. We registered a good eighty transactions with a volume of around €1.7bn, roughly the same level as in January. The figures for the first two months of 2024 are also roughly in line with the previous year's figures. Transaction activity appears to have bottomed out, but is probably not yet to increase. We are still not observing any significant increase in the number of transaction processes. In addition, some processes are still being cancelled and do not result in a sale because the landlord's target price has not been reached.<ref>https://www.savills.com/research_articles/255800/295306-0</ref> | There were no signs of such a turnaround in February either. We registered a good eighty transactions with a volume of around €1.7bn, roughly the same level as in January. The figures for the first two months of 2024 are also roughly in line with the previous year's figures. Transaction activity appears to have bottomed out, but is probably not yet to increase. We are still not observing any significant increase in the number of transaction processes. In addition, some processes are still being cancelled and do not result in a sale because the landlord's target price has not been reached.<ref>https://www.savills.com/research_articles/255800/295306-0</ref> | ||
[[File:Screenshot 2024-03-26 102807.png|alt=|center|thumb|703x703px|https://www.savills.com/research_articles/255800/295306-0]] | [[File:Screenshot 2024-03-26 102807.png|alt=|center|thumb|703x703px|https://www.savills.com/research_articles/255800/295306-0]] | ||