Strongest-ever 4th quarter leads to superb result
With no sign of the pandemic abating, investors continued to prefer safe asset classes such as offices (56 %) and mixed used real estate (28 %), avoiding hotels and shops.
The high volume of trading in properties costing over €100m was reflected in the fact that this price category comprised 68 % of the total market in 2021.
Thanks to the 2nd-quarter “Fürst” transaction, fund managers accounted for 22 % of the market, closing the year as major buyer group. Next in line were private equity funds/opportunity funds and developers who took 15 % of the total volume each.
The biggest vendor groups were developers (28 %) followed by non-listed property companies (15 %).
Investor interest continued to focus on office properties let long-term, preferably to public-sector tenants. Properties could command price to annual rental income ratios of up to 38.5, squeezing the prime yield to 2.6 % by the end of 2021. Prime yields on industrial and logistics real estate slipped appreciably, dropping 0.4 percentage points year on year to 3.4 %. The prime yield on commercial buildings also slipped a little to 2.75 %.
Slightly more international buying activity was noted compared with the previous year; these actors’ share of total trading rose to 58 %, still a low figure for the national capital.
|Investment market | Berlin | 2021||Q1 -4|
|Transaction volume [€ millions]||10,500|
|against prior yr [%]||+43|
|Share of trading in CBD [%]||28|
|Proportion of international investors [%]||58|
|Prime net yield, office [%]||2.6|
|against prior yr [percentage points]||-0.1|
|Prime net yield, commercial buildings [%]||2.75|
|against prior yr [percentage points]||-0.05|
|Prime net yield, logistics properties [%]||3.4|
|against prior yr [percentage points]||-0.4|
|Strongest asset class||Offices|
|Strongest asset class [%]||56|
|Ku’damm plus side-roads||Mixed use||Aggregate Holdings||Vivion||1,250|
|Periphery East||Offices||Signa Real Estate||Schroder Properties for Illmarinen||425|
“Boulevard Berlin Wertheim / Karstadt”,
Schlossstraße 7-10, 11-15
|Periphery south||Retail||York Capital Management/ Dunman Capital Partners||Klépierre||250|
|Mitte 1a||Mixed use||Kölnstrasse 89 (Jagdfeld-Gruppe)||Bank consortium headed by Credit Suisse||225|
“Berlin Criminal Investigation Office”