Investment market remains on track

Most investors (90 percent) are sticking to their current transactions despite the continuing spread of the corona pandemic. This is the result of an ad-hoc survey conducted by Engel & Völkers Investment Consulting among 100 market participants in the period from 23 to 26 March 2020.

According to the survey, 47 per cent of those surveyed stated that they were holding on to their current transactions, while a further 43 per cent said they were pausing current transactions. 10 per cent of those surveyed have cancelled their current transactions. The main reasons for postponing or cancelling are problems with pricing (43 percent) and financing (33 percent). The respondents are also still relaxed about rent levels: Half of those surveyed still assess the rental situation as stable.

Further results

• Around 60 percent of those surveyed have already been confronted with requests for rent deferrals or rent reductions. Among the retail-oriented investors, the figure was as high as 80 percent.
• The majority of those surveyed assume that the multipliers will remain the same or only fall slightly (87 percent). They indicate how many years it will take for the property to recoup the acquisition costs via rental income. 
• 7 percent of those surveyed even expect the multipliers to increase - real estate is still considered a safe haven in times of falling stock markets.
• According to Engel & Völkers Investment Consulting, there are strong fluctuations between the individual segments. The surveyed investors are still cautiously optimistic and patient - but this could change quickly if contacts remain blocked.

To the survey

Engel & Völkers Investment Consulting conducted the online survey to assess the investment markets under the influence of the Corona pandemic and the initial two-week contact ban in Germany. The survey was mainly aimed at institutional and semi-institutional investors. 47 percent of those surveyed stated that they invest in the residential real estate segment, 53 percent in the commercial segment.

Enjoy reading the survey. If you have any questions, please do not hesitate to contact the Engel & Völkers Investment Consulting team.