German Property Slump Deepens With 19% Drop in Investment Deals

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Investor appetite for German real estate deals remained muted at the start of the year, according to Jones Lang Lasalle, even as some valuations look to be bottoming out and interest-rate cuts edge closer.

The number of transactions dropped 19% in the first quarter compared with a year earlier, the broker said Monday. The total, €6.3 billion ($6.8 billion), was the weakest for the period since 2011. Sellers are having a particularly hard time finding buyers for larger portfolios, with deals down 50% in this segment.