Players in Berlin’s market for investments in commercial properties remained cautious in the 1st quarter of 2024. The transaction volume of €600m fell 14 % short of the prior year’s total. Year on year the proportion of big-ticket trades, i.e. properties costing more than €100m, slipped from 67 % to 47 %.
“As in 2023 we frequently see that sales are impeded by too big a gap between market price and book value,” says Frank-D. Albers, managing director of Grossmann & Berger Immobilien, member of German Property Partners (GPP). Several surveys do, however, indicate that the mood is brightening.
“This year we expect the number of transactions to rise slightly higher than the total in 2023. There is growing demand for core and value-add real estate, and investors are focussing on good locations. Therefore, it would appear realistic to expect the transaction volume for 2024 to exceed the prior year’s figure of 2.7 billion euros for a final total of up to 4.0 billion euros,” forecasts Stefan Olsson, Head of Investment Berlin for Grossmann & Berger.
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The Market survey investment Berlin 2024/Q1 is available on our website.