At a Glance Q1 2023

Investment market Berlin

Investmentmarkt Berlin

CLEAR NUMBER ONE EVEN IN A DIFFICULT ENVIRONMENT

The current difficult market environment caused by the changed financing conditions also affects the Berlin investment market. As in all other locations, the pricing discovery phase for new and sustainable price levels has not yet been completed. As a consequence, this leads to significantly lower transaction volumes than in previous years. In a nationwide comparison, the German capital has nevertheless performed relatively well. With an investment volume of just under €1.3 billion in the first quarter, the previous year's figure was missed by a good 48% and the ten-year average by 22%. Considering the very ambitious environment, however, it is remarkable that the long-term average for single investments was even slightly exceeded by just under 4%. However, it must be taken into account that a very large part of the result is due to the partial takeover of KaDeWe, in which Harng Central Department Store Ltd. from Thailand acquired a share of almost 50%. Several hundred million euros are attributable solely to this transaction. Although, traditionally, Berlin's market is often characterised by a high share of extraordinary big ticket deals. With a result of well over one billion euros, Berlin is the undisputed leader of all German locations. Munich, ranked second, only registered a transaction volume of just over €540 million.

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