Germany gets record foreign resi investment in 2011 says Patrizia

2011 is emerging as a record year for the German residential market. More than 220 large-scale residential portfolios were sold to international investment groups during the year versus 171 in 2010, the Patrizia Immobilien Group told OPP this week.

These deals represented an investment volume of about ?5.7 billion, global agency group Jones Lang Lasalle told OPP and “the most active buyers were institutional investors like listed companies, funds, banks, REITs, and fund managers.”

Companies like this nearly ?4.4 billion of the total spend.
And in leading commercial centres like Munich rents are also starting to reach new record levels.
The city has been experience rental growth rates of 1.5% for apartments in old buildings, and for existing apartments it has reached 1.6%. New builds in Munich are getting rental growth rates of 1.4%.

Terraced houses in the Bavarian capital saw rental growths between 1.9% and 3.5% and semi-detached houses 3.2% to 3.6%.

In monetary terms, old apartments with a high dwelling value average 13.70 ?/sqm at the moment and average rents for existing apartments are 12.70 ?/sqm. New build apartments are getting 14.00 ?/sqm.

http://www.opp.org.uk/news-article.php?id=6095