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