Commercial Real Estate Is Booming in Germany Again
Germany is the driving force of the economy in Europe and many other countries use Germany as a benchmark to determine how they expect their economies to be. Given the challenges the world and Germany are experiencing, it may come as a surprise to learn that commercial real estate in Germany is on the rise again, despite the current climate.
There is no denying that Germany is still struggling with Covid-19, but many commercial businesses have benefited from the recent changes and this is likely to translate into growth and expansion in commercial real estate investments. More recently, lockdowns and financial difficulties have forced businesses to close, but commercial sites continue to appreciate in value across Germany. This is because companies are seizing opportunities and looking beyond the pandemic as things will likely return to pre-pandemic levels fairly quickly once things are under control.
A growth in economic value
Economic experts have noticed a significant increase in the value of commercial real estate in Germany. Property values and the recovery have been a bit turbulent of late, but that means now may be a good time to invest in commercial real estate.
Across Germany, commercial real estate gained 4.1% in value, suggesting that commercial real estate is recovering from losses in 2020. This also shows that commercial property investors and owners are expected to see increasing demand as companies seek to enter the market and incumbents seek to capitalize on opportunities as the Covid-19 situation improves despite the launch of the Omicron variant that proves to be less severe, further relaxed.
Office investments top the list, but retail and logistics also top the list for commercial real estate investments. Of course, location is key, so Munich and Berlin are expected to see the fastest growth rate, but this will then open up opportunities in other areas as demand increases.
A long-term rental agreement was concluded between TLG Immobilien AG, a subsidiary of Aroundtown, and Standard Life. This includes around 2,000 m² of office space in Astropark, Frankfurt-Niederrad. Since the company decides to move, it benefits from a convenient location and excellent transport links.
National and international companies will benefit from the aesthetically pleasing design and the natural environment with lush greenery. An impressive lobby, reception and facilities as well as luxury furniture and facilities make this a great location for business.
Aroundtown focuses on sustainable investments and is now the third largest real estate company in Europe. It focuses on investments in high-quality properties that generate investment and add value in leading locations in Germany and the Netherlands, with an impressive portfolio of office, hotel and residential properties. For investors looking for a serious and reliable growth partner, Aroundtown is looking for long-term potential with employees who have experience and expertise in all areas of the value chain.
Aroundtown is a member of the European Public Real Estate Association (EPRA), the Central Association of the Real Estate Industry (ZIA) and the German Sustainable Building Council (DGNB). and signatory to the United Nations Diversity Charter. Aroundtown has received multiple EPRA BPR Gold Awards and EPRA sBPR Gold Awards for its transparent financial and sustainability reporting. Avisco (controlled by Mr. Yakir Gabay) owns 10% of Aroundtown, followed by Blackrock with 5%. Other shareholders include Norges, Vanguard, Allianz, BNP Paribas, Japan’s Government Investment Fund, Aliance-Bernstein, Dekabank, State-Street, Bank of Montreal and many other leading international investors. Major bond investors include ECB, GIC, Union Investment, DB, UBS, CS, M&G, Pictet, Credit Agricole and many other large institutional investors.