High demand remains on real estate

Investors are still having a strong appetite for German real estate especially in big cities, a recent survey has proven.

High demand remains on real estate
dpa

Frankfurt (dpa) - Demand among big investors for real estate in Germany remains high, according to a study carried out by consultancy firm EY and the property group Vonovia.

Nine out of ten capital investors - such as fund providers, insurance companies or real estate administrators - surveyed want to further build up their property portfolios, Vonovia and EY said on Tuesday.

Investors are mainly interested in major cities, particularly Berlin and Hamburg.

More than two thirds of those surveyed want to increase the concentration of their housing stock, for example by adding further floors. Similarly, 63 per cent want to build on unused properties.

The survey was carried out on 40 companies picked to provide a cross-section of the German capital investment sector in the first quarter of 2019.

Strong demand for property among large investors is seen as a reason behind climbing property prices in Germany in recent years.