The annual real estate KVG survey by dpn in cooperation with Kommalpha examines the development of the real estate market in terms of transaction dynamics, growth and elementary changes.
Lively real estate market during the crisis
Every year, dpn, in cooperation with Kommalpha, carries out the comprehensive real estate KVG survey, in particular to evaluate the development of the real estate market due to various factors. This year’s results are shaped by the effects of the ongoing corona pandemic, which has not only had everyday life under control for months, but also the real estate market. The CEO of Kommalpha AG, Clemens Schuerhoff, summarizes the results of the current survey and emphasizes that, among other things, transaction dynamics in the real estate market were particularly high and that there was a lot of movement in the market due to the crisis.
Distribution of real estate special fund objects
A total of 18 real estate management companies took part in the real estate management company survey 2021, which answered questions about property purchases and sales. According to their own statements, they made purchases of almost 70 billion euros and sales of almost 27 billion euros last year. This makes it clear that the real estate portfolio has increased overall with an exit rate of around 38 percent. The real estate special fund properties have so far been located particularly in Germany and in Europe in general, while interest in North America and the rest of the world is still significantly lower. In comparison with older real estate KVG surveys, however, it becomes clear that the number of regions with special real estate fund properties is increasing slowly but steadily.
Development of the real estate special funds
Over the past ten years, the market for special real estate funds has not only experienced extreme development, but has also generated strong growth. With a volume of 39 billion euros in special fund assets at the end of 2020, the pension plan was the largest group of shareholders in the German market. This puts them just ahead of the insurance company with assets of 38 billion euros. Meanwhile, the real estate special fund has raised more than 31 billion euros from pension institutions in the past ten years and the counterparts from insurance companies 24 billion euros. Together, the two investor segments have a market share of around 29 percent and are thus at the top of the real estate special fund market. The positive development of the banks’ special real estate funds has also outperformed the market. Of the three investor segments mentioned, most of the respondents continue to see the highest demand.
Diversified types of use particularly in demand
For investors, some specific characteristics of the requirements carry more weight than others. From the point of view of the industry, types of use are in demand that have a stable cash flow and have so far survived the corona crisis largely unscathed. These requirements are met in particular by housing, logistics and food retailers as well as specialist markets and local supply centers. Office buildings rented to tenants with good credit ratings are also on the list. There are also diversified types of use, such as healthcare properties or mixed-use residential communities. In terms of implementation and form, the focus is on club transactions in the above-mentioned forms of investment, specific investment options for short-term implementation as well as project development and forward transactions that achieve corresponding added value through new construction or renovation.
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