Is there any value left in German real estate?

Even with prime commercial property yields in Germany plumbing new lows, investment activity is still strong. But with tighter monetary policy on the horizon, property yields are at threat from rising risk-free rates. With a poor outlook for capital value growth, German cities are set to see some of the lowest average total returns over the 2018-21 period. And with pricing already looking expensive, particularly in the office and industrial sectors, German real estate doesn’t look particularly good value.