Secondary office real estate in Germany benefits from the same positive trends as office real estate in general, but is more attractive for investors, offering higher yields and lower volatility.
Cornhill Real Estate’s business model is highly resilient, as demonstrated by the limited impact of the COVID-19 pandemic.
COVID-19 Recovery Scenarios
Generally speaking, however, many office properties may become more expensive (..), similar to residential properties. This applies above all to office buildings in metropolitan areas, which have been increasingly regarded as a “safe haven” asset in the last few years.DEUTSCHE BANK RESEARCH, 03-Apr-2020
Germany is the most stable economy in Europe with Real estate being its safest area to invest. Also, due to its comparatively low prices and long-term rental contracts, the office sector in secondary locations is the most defensive, even in Corona times.
Sustained by a strong and resilient macroeconomic environment, which is expected to retain its leading position in Europe after the COVID-19 pandemic.
Germany benefits from a top-of-class infrastructure, education and healthcare system.
The German economy is expected to rebound quickly from COVID-19 and return to its fundamentally healthy status, as demonstrated by the forecasted unemployment figures for 2021E which are in line with recent levels.Euro area 8.9%
The German economy has been growing for many years. At the same time, the sound fiscal policies of recent years have steadily increased the resilience of German public finances. The federal government is therefore able to support people and the economy both during the short-term response to the crisis and after the acute phase of the crisis is over.GERMAN STABILITY PROGRAM, FEDERAL MINISTRY OF FINANCE, 28-Apr-2020
The main aim of economic policy in this situation must now be to alleviate uncertainty. No healthy company should go bankrupt due to corona, no job should be lost. We are therefore putting a comprehensive protective shield in place for employees and companies.
PETER ALTMAIER, FEDERAL MINISTER FOR ECONOMIC AFFAIRS AND ENERGY, 13-Mar-2020
Continuous and substantial growth in 2019A, with record investment volumes, as rents are continuously growing, and vacancy rates are decreasing.