29th September 2016 - Immobilien Zeitung

Many Investment Strategies on Empty Residential Real Estate Market

On the current, difficult residential real estate market, investors are becoming increasingly bold. Several investors discuss their strategies.

In order to secure residential properties and maximise returns, investors are becoming increasingly bold. They are buying projects currently only existing on paper, plots that have yet to be developed, niche products and are reinvesting in the East. However, there are sceptics too.

This article was originally published in German only. A summary in English is available.

This article discusses the current market climate of the German residential real estate market and includes several different investor opinions on this matter and their investment strategies. The article begins with the opinion of Ernst Vejdovszky, S Immo, who does not have a good feeling about the current market situation and has thus decided to sell almost 30 % of his portfolio. Following, Konstantin Lüttger, CBRE, welcomes this decision as he sees an extremely high demand for property, which has to be met, on the residential real estate market. The following paragraphs state facts and figures concerning the transaction volume of the residential real estate market. The result is an overall increase in the transaction volume, as well as in the price factor properties are being sold at; this is commented on by Lüttger and John Amram from HPBA. Next, strategies in order to counter these high prices and ensure a stable profit are discussed. Opinions include that of Niewöhner-Papes, Industria, who is prepared to invest in properties with a high price factor as long as they guarantee stable returns. On the other hand, there are investors who are more risk ready and are investing in niche properties, such as micro apartments and student housing. Amram also mentions that he has observed an increased interest in properties in the east of Germany. The article concludes by confirming that companies are indeed increasingly investing in the east and outside of Germany.
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