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More than 500 brokers, managers, experts and other industry professions gathered in Stuttgart last week for the German property professional group IVD’s annual meetings. As part of the meetings, May 3 was celebrated as “German Real Estate Day,” providing the occasion to reflect on, among things, the industry’s performance over the past year. 

"2011 was a good year for the industry," said IVD President Jens-Ulrich Kiessling in his opening address (pictured right). "Despite the currency and financial crisis, the housing market, in particular, developed very positively. Despite rising rents and purchase prices in many cities there are no signs of overheating in the market, so we are optimistic for the coming years.” 

The real estate industry is seen as one of the most important economic activities in Germany. "The extraordinary development of the construction and real estate industry is the backbone of the economy," says Kiessling. The transaction volume of commercial and residential real estate in Germany in 2011 increased by approximately 13.1% from the previous year, according to IVD calculations extrapolated from the real estate transfer tax reported by the Federal Ministry of Finance. The highest yields were obtained with 33.66 billion euros in Bavaria, followed by North Rhine-Westphalia (€ 32.71 billion) and Baden-Wuerttemberg (€ 25.13 billion). 

For 2012, IVD is expecting the high volume of transactions to continue. A recent survey of IVD brokers reveals that 87% percent of participants expect higher, steady sales for 2012. Only about 13% percent of respondents expect sales to decline or provided no response.

Kiessling noted that these positive developments were reflected in the membership development of the IVD.  “2011 was also another successful year for IVD. For the fourth year in a row we have recorded an increase in membership," announced Kiessling. The group increased its membership by 3% over the past year.

In the wake of the economic and financial crisis, real estate has become the most attractive form of investment for many. The growing importance of the consultative and service-providing professionals associated with the property industry are a result of this development. "It is increasingly understood that property is an asset that produces its earning power optimally only if the transaction and the management will be accompanied by real estate professionals,” said Kiessling. 

IVD estimates that the proportion of broker participation in the mediation of commercial properties is 80% to 90%, and between 50% and 60% for residential properties. Involvement with rental properties is lower, at 35 – 45%.