21. November 2019 - Immobilien Zeitung

Off-market booming

by Monika Leykam

The interest of investors in purchases outside of large structured bidding processes has further increased in the past year. This has been discovered by bulwiengesa and the investment broker HPBA. Accordingly, 71% of the respondents participated in bidding processes, 98% stated that they had at least in part been involved in off-market transactions. […]

This article was originally published in German only. A summary in English is available.

Summary
The IZ article also considers the second joint Off-Market Study by bulwiengesa and HPBA. The newspaper reports that the segment for off-market transactions has seen greater interest on the part of investors. Accordingly, 98 per cent of the investors surveyed in the study are involved at least partially in off-market transactions. The greater exclusivity and the greater execution certainty are rewarded by the respondents with price mark-ups of as much as 7.5 per cent. The estimated transaction volume for residential and commercial real estate for 2018 amounted to some 40 to 70 billion euros; this sum is not covered by the broker statistics. According to Andreas Schulten, the executive manager at bulwiengesa, this figure is difficult to determine as a lot of deals “slip under the radar”. A statement that is confirmed by HPBA CEO John Amram: “There are a lot of transactions that nobody knows anything about.”