Posted by Jörg Ritter
Head of Retail Investment Germany
Jones Lang LaSalle
To be honest, 12 months ago MAPIC was not an outstanding or exiting experience from the perspective of a German retail transaction adviser. The German market was quiet, transaction volumes were low and people were generally not feeling very secure. A lot of investors and developers simply stayed at home.
So how is it feeling this year? As I arrived yesterday morning at the Palais des Festivals for the first time I was surprised at the huge number of visitors already there and the high footfall in the aisles of the exhibition. You could actually feel and see a busy and positive atmosphere right from the word go.
And from a business perspective? Although transaction volumes nearly doubled in Germany in the first three quarters of 2010, the market was driven mainly by domestic investors. But the first (very busy) day at MAPIC has made me think that this is going change.
From an international perspective Germany seems to be the ‘best in class’ economy in Europe – attractive for high profile retailers to expand into and for international money to invest in. The appetite for core plus / value add products seems to be back. Investors are starting to look for product where there is a need for intelligent asset management. And – of course – a huge number of core buyers are still active as well.
If MAPIC can be seen as a barometer to the retail investment market, then I believe that we are going to have beautiful weather over the coming months in Germany; something I am looking forward to!