Germany’s listed real estate industry has overtaken the UK for the first time as largest market in the FTSE EPRA/NAREIT Developed Europe index, new data from the European Public Real Estate Association (EPRA) shows.
Largely driven by growth in the residential property market, Germany has recently raised its share to represent 27.54% of the index, surpassing by a narrow margin the UK which now accounts for a 26.65% share. The Netherlands follows at 12.76% and France at 9.18%.
The index, covering companies with a total market capitalisation of around €250 bn, currently includes German listed residential firms such as Vonovia, Deutsche Wohnen and LEG Immobilien among its top 10 constituents, according to EPRA.
The industry body, which holds its annual conference this week, is also expected to announce strong growth in speciality property sectors, such as logistics, industrials, healthcare and hospitality.
According to research from Amsterdam-based Kempen, due to be published this week at the EPRA conference, these real estate segments are set to propel a substantial increase in the market value of Europe’s listed real estate sector over the next five years, with the market capitalisation of the Developed Europe index expected to double to €500 bn by the end of 2022.