The second HPBA Off-Market Study with bulwiengesa illuminates new aspects of the real estate investment market and points to the development of trends since the last study in 2018. In this respect it can be seen that off-market transactions are concluded in widely differing segments of the German real estate market. The total transaction volume of at least 40 billion euros implemented using off-market models such as the HPBA method was also confirmed.

“The second HPBA Off-Market Study reveals that the proportion of investors who successfully conclude off-market purchases and sales on a regular basis has once again increased considerably in a comparison with on-market processes. In addition, off-market models reach investor groups who do not participate in classical bidding processes.”

John Amram
founder and managing director, HPBA

The 10 most important points from the second HPBA Off-Market Study

01 Participants

More market players are reached through off-market processes than through bidding processes.

1-2019
3-2019

02 Transaction volume

Off-market proportion of German real estate investment market at least 40 billion euros

03 Proportion of share deals

About one third of all off-market transactions are concluded as share deals.

5-2019
7-2019

04 Benefits

The fundamental benefits have scarcely changed compared to the first study.

05 Success Rate

For three quarters of all sellers and two thirds of all buyers at least every second off-market transaction is successful.

9-2019
11-2019

06 Selling prices

Four out of ten investors are prepared to pay a price delta of 5.0 to 7.5 per cent for an off-market transaction.

07 Selling prices

The proportion of investors prepared to pay a price delta has increased compared to 2018.

13-2019
15-2019

08 Satisfaction with prices attained

Buyers and sellers are more satisfied with the prices attained with off-market transactions.

09 Transparency

The proportion of respondents who regard off-market processes as less transparent than bidding processes has increased slightly.

17-2019
19-2019

10 Compliance

Compared to 2018 the respondents are being more specific in their treatment of compliance regulations.

01 Participants

More market players are reached through off-market processes than through bidding processes.

1-2019

02 Transaction volume

Off-market proportion of German real estate investment market at least 40 billion euros

3-2019

03 Proportion of share deals

About one third of all off-market transactions are concluded as share deals.

5-2019

04 Benefits

The fundamental benefits have scarcely changed compared to the first study.

7-2019

05 Success Rate

For three quarters of all sellers and two thirds of all buyers at least every second off-market transaction is successful.

9-2019

06 Selling prices

Four out of ten investors are prepared to pay a price delta of 5.0 to 7.5 per cent for an off-market transaction.

11-2019

07 Selling prices

The proportion of investors prepared to pay a price delta has increased compared to 2018.

13-2019

08 Satisfaction with prices attained

Buyers and sellers are more satisfied with the prices attained with off-market transactions.

15-2019

09 Transparency

The proportion of respondents who regard off-market processes as less transparent than bidding processes has increased slightly.

17-2019

10 Compliance

Compared to 2018 the respondents are being more specific in their treatment of compliance regulations.

19-2019

The key information on the panel

11 Investor profile

21-2019
23-2019

12 Assets under management

11 Investor profile

21-2019

12 Assets under management

23-2019
  • “The second HPBA Off-Market Study reveals differentiated results on the characteristics of off-market transactions – for example on the question of the price delta to bidding processes – and confirms clear trends: that 98 per cent of the professional market actors regularly pursue off-market transactions and, conversely, that 29 per cent of the professional actors avoid and reject structured sales processes.”
    Andreas Schulten
    Executive Manager
    Bulwiengesa AG

The full study is
to be found here

The graphics in their entirety
are to be found here

Do you have any
questions or suggestions?
We look forward to hearing from you.

The full study is
to be found here

The graphics in their entirety
are to be found here

Do you have any
questions or suggestions?
We look forward to hearing from you.