German real estate market overtakes the UK, sees rise in niche investments and tokenisation

Germany has overtaken the UK to become the most active property market in Europe for the first time in a decade according to Savills. The commercial sector has already seen €43.4bn in transactions in 2019 with huge investments by Commerz Real AG and TLG. CBRE Germany Head of Investment, Fabian Klein also seems confident in the continued momentum in the German market in the face of an economic slowdown and despite an 11% decline from 2018.

While the supply and demand issue in the real estate market has been cited as a signal of a property bubble, investors are looking to the alternatives sector to alleviate pressures.

Niche investments are seeing a resurgence among investors, who are showing interest in micro living, properties from the healthcare centre and public-sector buildings, found Universal-Investment. Further reaffirming this, Savills cited increased investment in planned care properties in the first half of 2019, amounting to €264 million – more than the combined total for 2017 and 2018.

German real estate experts, Fundament Group are also pursuing alternative investments beginning with a daycare centre in Hamburg and a micro/student apartment complex in the University city of Jena with a combined volume of over €31 million.

A tokenization platform, Fundament Group, recently secured German real estate developer, Bauwens as a prominent shareholder, having achieved regulatory approval from the German Financial Market Authority (BaFin) for a €250m blockchain-based real estate bond in July. The Fundament Group Co-Founders include the President of the German Blockchain Association, Florian Glatz, policy advisor to the German government, Robin Matzke and seasoned real estate investor, Thomas Ermel.