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21/02/17

Residential and commercial real estate prices rise by over 6 %

Posted by Investix Germany

Prices of residential and commercial real estate in Germany increased at the same rate last year. While the vdp Property Price Index for residential property rose by 6.6 %, somewhat more than the previous year (+5.9 %), the commercial index surged by 6.0 % (2015: +2.0 %). Looking at the 4th quarter in isolation, prices for commercial assets climbed +7.8 % compared to the same quarter the previous year, which is the first time since the beginning of 2014 that the commercial price increase surpassed that of residential properties (+6.1 %). Institutional investors focused on office assets, whose capital values gained 10.1 %. At the same time, demand for office space again escalated, which boosted rent prices by 4.3 %. Prices for retail assets also continued to rise (+3.1 %). In light of positive sales figures, demand for retail space increased, so that retail rent prices also nudged slightly upward by 0.8 %. Capital values for multi-family homes showed a plus of 5.8 % in Q4; rents did not keep pace at +3.5 %.

Source: TD International

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