Investors and Berlin representative got together to discuss the current opportunities and threats in German residential market during the panel session, “Residential in Germany: assets for value.”
▪ For Rolf Buch, CEO, Deutche Annington Immobilien, the residential market in Germany is unexciting because it is stable – in terms of economy and regulations – and that is the reason why the investors love it.
▪ Douglas Edward, Managing Director, Corpus Sireo Investment Management, stated that investment opportunities for the opportunistic funds ended and that now is the time for core and value added investors to come into the market. The other panelist agreed that tier 2 cities are the best to invest now, because they expect a higher rent growth in these locations.
▪ Mathias Leube, Head of Real Estate Germany & Regional Head of Asset Management, referred that a yield of 4% is enough for his investors, since he estimates that rents will go up by 6 to 8%.
▪ The majority of the panelist believe that the most important drive for the residential market in Germany are the demographic trends. However Michael Mueller believes that the city’s infrastructure is the most important driver to create the demand for the residential market, since this is what will attract people to the cities in the long term.
