19th October 2016 - IPE Institutional Investments

Off-Market Deals: an Old Hat Back in Fashion

In a difficult market climate the targeted buying and selling of properties is becoming increasingly important, and off-market deals are now openly talked about.

The overheating of the German property market could be best seen at this year’s Expo Real in the usage of the term „off market“.

But John Amram, Director of HPBA Real Estate Solutions, a company specialised in this area, told IPE Institutional Investment that “there are still very few service providers who exclusive specialise in this niche“.

He does, however, see a rise in the popularity of off-market deals in market participants at both ends: „the seller has more flexibility to find the best buyer because many best buyers do not participate in bidding processes“.

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

Summary
Even though the German property market has begun to overheat, something which can be seen in the usage of the term “off market”, John Amram tells IPE Institutional Investments that there are still very little service providers in this niche area. He does see a growing interest, however, as many best buyers do not take part in traditional bidding processes. Off-market deals also offer the advantage of higher profits and the ability to set a time limit (time boxing) for the seller, and an increased security of the deal. Although the nature of off-market deals does not allow for a precise estimate, HPBA oversaw transactions with a total volume of one billion euro in 2016.
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