Pressmaster/Envato
Germany’s retail real estate sector has proven resilient and attractive in 2024, emerging as the strongest asset class with nearly €5 billion in investment turnover through the first three quarters.
CBRE reports retail property sales totaling €4.8 billion, reflecting a 30% increase year-over-year. The primary focus for investors remains on food retail assets, particularly supermarkets, which are seen as reliable, resilient investments. Shopping centers, previously less favored, are also seeing renewed demand, highlighted by Ikea’s acquisition of Munich’s Pasing Arcaden.
Additionally, inner-city retail properties are in demand among family offices and private investors, who continue to see value in high-traffic urban retail locations. Investment estimates vary slightly by source, with BNP Paribas Real Estate placing retail turnover at €4.9 billion and Savills at €4.3 billion. Colliers reports €3.8 billion, noting that retail comprises 22% of Germany’s total commercial investment market, positioning it as the second-strongest asset class.
Discrepancies in figures largely relate to the major KaDeWe department store transaction in Berlin, which was initially counted in 2023 by some agencies but has since been reclassified under 2024 figures. According to Jan Linsin, Head of Research at CBRE, “The deal did not materialize in 2023 and has now been valued in 2024,” underlining the strength and continued investor interest in Germany’s retail real estate market this year.
