Categorized | Commercial, International

German Commercial Property in High Demand

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After its strong increase to finish 2011, the German commercial real estate market is expected to post even stronger results in 2012. Analysts believe that the market will exceed twenty-two billion Euros in transactions in the next year.

The commercial real estate market closed the fourth quarter of 2011 with nearly six billion Euros in transactions. The total transaction volume for the year exceed twenty-two billion Euros, marking more than a twenty percent increase from just one year earlier.

Some analysts are not so quick to predict guaranteed success for the German commercial real estate market, as they believe there are too many uncertainties to give an accurate estimate. They believe that financing is more important than ever this year, and will ultimately affect the number of transactions that take place.

The most popular commercial real estate sector in Germany in 2011 was the retail sector. The retail commercial real estate market had an total transaction volume of more than eleven billion Euros. That number represented almost half of the total commercial real estate transactions in Germany. It was a sixty percent increase from the numbers posted in 2010, which serves as an indicator that the sector was more secure in 2011.

As can be expected, the majority of the commercial real estate transactions took place in Germany’s five biggest cities and markets. Frankfurt reported the strongest share of transaction volumes, as it accounted for fourteen percent of the total. Only in the city of Düsseldorf did the number of transactions decrease from 2010 to 2011.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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