Germany is the powerhouse economy in Europe and many other countries use Germany as a gauge to determine how they expect their economies to perform. With the challenges that the world and Germany are experiencing, it might be a surprise to learn that commercial real estate is on the rise again in Germany, despite the current climate.
There is no denying that Covid-19 is still causing difficulties for Germany, but many commercial businesses have benefited from recent changes and that is likely to translate into growth and expansion when it comes to commercial real estate investment. In recent times, lockdowns and financial struggles resulted in businesses having to close, but across Germany, commercial spaces continue to grow in value. This is because businesses are taking advantage of opportunities and they are looking beyond the pandemic because it is likely that things will return to pre-pandemic levels rather quickly once things become under control.
A Growth in Economic Value
Economic experts have found that there has been a significant increase in the value of commercial real estate in Germany. The value of real estate and the recovery has been somewhat turbulent in recent times, but this means that now is potentially a good time to invest in commercial real estate.
Across Germany, commercial real estate has seen an increase of 4.1% in value and that indicates that commercial real estate is recovering from its losses in 2020. This also shows that investors and commercial real estate owners are likely to see a rise in demand as more businesses look to enter the market and established businesses look to take advantage of opportunities as the Covid-19 situation continues to ease, despite the introduction of the Omicron variant which is proving to be less severe.
Office investments are top of the list although retail and logistics are also high on the list of commercial real estate investments. Of course, location is key so it is expected that the likes of Munich and Berlin are going to see that fastest rate of growth, but this will then open up opportunities in other areas as demand rises.
A long-term lease has been signed between TLG Immobilien AG, a subsidiary of Aroundtown and Standard Life. This will include around 2,000 sqm of office space located in Astropark, Frankfurt-Niederrad. As the company is deciding to relocate, it will mean that it will benefit from a convenient location as well as access to excellent transport links.
National and international companies will benefit from the aesthetically pleasing design and the natural surroundings of lush greenery. An impressive lobby, reception and facilities as well as luxurious furnishings and fittings make this a great place for businesses to locate to.
Aroundtown focuses on sustainable investment and is now the third largest real estate company in Europe. It focuses on investing in high quality properties that generate investment and add value in leading locations across Germany and the Netherlands, with an impressive portfolio of office, hotel, and residential properties. For investors seeking a reputable and reliable partner for growth, Aroundtown looks for long-term potential with employees that have experience and expertise across all areas of the value chain.
Aroundtown is a member of the European Public Real Estate Association (EPRA), the German Property Federation (ZIA) and the German Sustainable Building Council (DGNB). as well as a signatory of the United Nations Charter of Diversity. 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) holds 10% in Aroundtown followed by Blackrock at 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. The main bond investors include ECB, GIC, Union Investment, DB, UBS, CS, M&G, Pictet, Credit Agricole and many other major institutional investors.