The study, which was conducted by auditing firm PwC in cooperation with the Urban Land Institute, found that real estate investment volume over the past 12 months in Germany amounted to €68 billion.
That is a significant rise from the country’s investment volume recorded last year: €54 billion.
In the UK, on the other hand, investments have fallen from €66 billion to €64 billion.
The study also found that German cities are among the metropolises in Europe with the greatest development potential. Four German cities ranked among the top six locations for investment and potential for development in 2018: Berlin, Frankfurt, Munich and Hamburg.
“Population growth, new business generated by Brexit, good economic conditions and political stability – that’s what investors like and this is exactly what Germany is profiting from,” said PwC partner Susanne Eickermann-Riepe.
Germany as a real estate location, especially Frankfurt, has benefited from the UK’s vote to leave the European Union, Eickermann-Riepe added.
But German real estate will likely have to pay a price for its increasing attractiveness. Experts interviewed in the study expect the highest rent increases in Europe to take place in Berlin, Munich and Hamburg.
London is the only city in Europe in which rent prices are likely to fall, the study found.
PwC carried out the study by interviewing 818 representatives from real estate companies, investment managers, property developers, institutional investors, lenders, exchange-traded property funds and property developers across Europe.