GERMANY Trends and Developments Contributed by: Carsten Loll, Otto von Gruben, Ivo Veit Wanwitz and Sebastian von Hornung, Latham & Watkins
ing preferred equity and structured financing, is likely to persist as traditional lenders remain cau - tious. At the same time, investors will continue to seek out high-growth, technology-driven real estate investments, particularly in data centres and digital infrastructure. Sustainability compliance is expected to become a major value driver, with real estate investors prioritising green-certified assets and energy- efficient refurbishments. The residential sector will remain a stronghold for investors, as supply constraints continue to fuel demand. However, regulatory compliance will be a key challenge, requiring investors to navigate policies sur - rounding rent control and affordability measures.
Germany’s PERE market remains highly attrac - tive, albeit with a strategic shift toward alterna - tive investments, flexible financing solutions, and ESG-aligned opportunities. Investors who can adapt to the evolving landscape will find high-quality, resilient assets capable of deliver - ing strong returns even in a high-interest-rate environment.
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