In 2022, there was less trading in residential portfolios and apartments than during the financial crisis in 2009 and 2010. This was recently announced by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). According to the BBSR, only twelve portfolios with at least 800 rental apartments changed hands in 2022 and only 38,400 residential units in total. This is based on an analysis of a corresponding database on residential transactions.
The BBSR points out that the two largest transactions took place at the beginning of 2022 and that most of the other transactions also took place in the first half of the year. In addition, there were almost no major transactions: Only once did a portfolio with more than 10,000 apartments change hands. No portfolio with more than 800 units was bought or sold by the public sector, i.e. the federal government, federal states, municipalities, social security funds and other public corporations, in 2022.
"The noticeable reluctance of market players is taking place against the backdrop of the economic and political conditions on the German transaction market," says Jonathan Franke from the BBSR. In addition to high inflation and the turnaround in interest rates, the weakening economy is resulting in low sales activity. "The war in Ukraine and the associated global uncertainties are also causing companies to adopt a wait-and-see approach," says Jonathan Franke. A significant number of major transactions are therefore also not expected this year.
Source: bbsr.bund.de
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