Real Estate

Market overview

Rising real estate prices and low vacancy rates in German cities continue to attract domestic and foreign investors. The transaction volume of the German real estate market grew by 30% to EUR 39.8bn in 2014 and thus continuously for the fifth year in a row. Similarly, global demand for suitable properties continues to grow and is expected to persist at continued high levels in the years to come. In the current market with declining margins, financial and real estate participants are under increasing pressure to identify properties and regions with attractive risk-return profiles.

Alternative Asset
Investment Chances

Due to the historically low interest rates, combined with a lack of profitable investment alternatives, Caplantic expects the demand in the real estate market to continue to remain strong in the years to come. Based on Europe’s continued improving economic performance, the region should remain attractive to investors. With the existing high investment volumes and a shortage of available prime-properties, returns however are expected to be significantly lower. In order to achieve higher margins, investors have started to focus more on B-locations and more opportunistic segments of the real estate market.

Caplantic offers full customer support in the selection, acquisition and financing of larger-scale real estate projects, as well as being able to offer both portfolio and risk management functions.

Track Record

Real Estate Portfolio

What our experts say

Both direct and indirect investments in real estate risks have certainly established themselves as the cornerstone of alternative asset investment. Low interest rate levels together with continuously growing demand for real estate investments have strongly eroded returns and loan margins in this segment. Especially important in such an environment, is the close cooperation with managers and experts, who have substantial knowledge and experience of the asset class - essential for an investor to make the right decisions.

Gerd Kremer
GLL Real Estate Partners
Managing Director

Key Figures

Global commercial real estate direct investments

$ Milliarden

*Region America, EMEA, Asia Pacific and rolling four quarter average summarised

Our Expert for Real Estate

Jun Huan

jun.huan@caplantic.com

+49 (0) 40 368 812 568

Market snapshot
  • Current economic development positively influences demand in the USA and Europe
  • BIG 7 continues to be the main focus for investors, alternative locations and opportunistic investments offer potential for high returns
  • Low interest rates environment stimulates direct investments, growing demand in Germany, more pressure on yields