German Property Index

The total return for German real estate investments once again topped the prior-year figure in 2015, rising from 13.1 % (2014) to 13.3 %, and thus setting another record for the time since the German reunification. This is a result of the German Property Index (GPI) issued by the consultant and analysis company bulwiengesa. Logistics (12.9 %, up from 11.1 % in 2014) and office (15.5 %, up from 11.4 % in 2014) prospered last year, boosting the total return nationwide to a new peak level. Conversely, retail (11.4 %, down from 12.1 % in 2014) and residential (15.0 %, down from 15.5 % in 2014) suffered drops in segment-specific total returns. "We are almost on the peak of the current market cycle," states Martin Steininger, chief economist at bulwiengesa. That being said, slowing growth rates are not an indication for a weakness of the respective sub-market, but express a less dynamic development compared to prior years. Differently put, they help to stabilise the market. "The current economic conditions – historically low interest rates, favourable terms of financing, and rich liquidity positions – suggest that demand for residential property will remain high while only purchasing prices will develop less dynamically than in the past," says Steininger.

Contact: Martin Steininger, steininger [at] bulwiengesa.de, Telefon +49 (0)89 - 2323 7636