CLEAR TOP POSITION DESPITE DECLINE IN TRANSACTION VOLUME
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Although the Berlin investment market was unable to match the previous year's level by midyear, it maintained its leading position among cities. With a decline in transaction volume of around 35%, Berlin recorded a better result than many other A-locations. Despite the challenging overall economic environment, Berlin achieved an investment volume of around €1.3 billion – a level that no other major investment market can currently match. Munich is in second place with around €900 million. The capital's position in the city ranking is further underlined by the fact that it recorded the highest number of transactions.
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The Berlin market has benefited from a few major deals so far this year. The sale of Upper West to the Schoeller Group family office for well over €400 million – the largest single deal in the first half of the year to date – has made a significant contribution to the result. The year-on-year increase in market momentum in the small and medium-sized segment, which is also having a positive impact on market development, is also encouraging.
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The sideways movement in prime yields continued in the second quarter. This was due to higher financing costs, higher yields on German government bonds, and current geopolitical uncertainties. In this context, the net prime yield remained unchanged at 4.25% for office and logistics properties and at 3.70% for premium high street properties in prime retail locations.