BERLIN-After two years of considerable transaction volume cuts on the German property market, German broker network DIP saw a 15% growth to $64 billion in 2010, especially in the commercial property sector with a 24% increase compared to 2009, and expects another 25% overall increase this year, with more assets for sale and riskier investments.

Deutsche Immobilien-Partner saw residential investments dominating the market for the first time in 2009 with 52% of transactions. Commercials returned in 2010, taking $34 billion of transactions.

“The investment market is looking up again,” said DIP Spokesman Henrik Hertz, a development mainly due to the economic upturn in Germany. “Though these figures are very positive at first glance, they still lay far below the 10-year average of $90 billion.” Hertz is optimistic that 2011 will break the $76 billion threshold as investors, who stabilized their portfolios post-crisis, will be willing to take advantage of higher prices for exit, thus providing more supply.

Large equity investors were looking for large core objects, especially retail in prime locations, a trend set to continue. “Only if potential investors up their readiness to assume risk and start looking for assets away from prime locations, will transaction markets profit,” said Hertz. He believes there is a possibility for that in 2011, with growing foreign interest, positive economic development and an increasing quota of speculative office developments. Banks will ultimately determine which projects they are willing to finance.

The seven largest commercial markets, Berlin, D