Rohrer Immobilien has successfully completed the brokerage of a multi-family house with 20 residential units in Oberschleißheim, near Munich. Built in 1965, the property has a total living space of approximately 1,170 square metres. The property was acquired by a consortium of private investors; the seller was a community of heirs. Confidentiality was agreed regarding the exact purchase price.
The transaction highlights a current trend in the real estate market: the high demand for existing properties that require refurbishment. Multi-family houses in particular, which necessitate substantial investment in modernising elements such as windows, heating systems or the building envelope, are increasingly becoming the focus of investors. According to market observers, these properties offer potential for sustainable value appreciation through targeted modernisations.
Dynamics in the market segment for existing properties with development potential
Sven Keussen, managing partner of Rohrer Immobilien, commented on this development: Many owners face the challenge of implementing necessary energy-efficiency refurbishments. Post-war buildings sometimes have a significant backlog of maintenance, which increases complexity and financial hurdles. At the same time, precisely these properties allow buyers to sustainably increase value through modernisation. Therefore, there is currently very high demand for properties with development potential, provided the location and micro-location are convincing.
Multi-family houses requiring refurbishment demand discounts for modernisation and potential rental losses, depending on rent levels and refurbishment needs. Technically and commercially savvy companies have specialised in this segment and see opportunities as well as interesting future prospects for their investments in taking on these risks. Often, decision-making processes in complex communities of owners hinder modernisations, which can lead to losses in income and value.
Keussen added that the market differentiates more strongly today than it did a few years ago. While modernised buildings continue to achieve a fair price, properties with a refurbishment backlog are gaining attractiveness as specialised buyers recognise their development potential. Even in the Munich surrounding area, these properties are meeting exceptionally broad demand. The current transaction in Oberschleißheim is, in Rohrer Immobilien's assessment, proof of a market trend that has been intensifying for months. Investors are once again focusing on existing properties whose value lies not primarily in their current condition but in their development potential. In parallel, communities of heirs are realising that their properties require increased focus on investment and resolve.
Rohrer Immobilien is currently facilitating the marketing of another multi-family house of comparable size and similar construction year in Puchheim, in the Munich surrounding area. The high response underscores the sustained demand for existing properties with development potential.
