MODERATE MARKET RECOVERX COMPARED TO THE PREVIOUS QUARTER
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In the first nine months of 2025, the Berlin investment market recorded an investment volume of just under €2.3 billion. This was slightly lower than the result for the same period last year (-14%). It also missed the ten-year average (€4.9 billion) by 54%, which is roughly in line with the average decline across all prime locations. Nevertheless, the German capital clearly maintained its top position among the investment markets with the highest investment volume. Munich (€1.4 billion) and Hamburg (€1.3 billion) followed at a considerable distance. On a positive note, momentum picked up noticeably after a quieter second quarter. Consequently, a transaction volume of almost €1 billion was recorded in the third quarter.
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As there are hardly any major portfolio transactions taking place nationwide at present, the Berlin market is also characterised predominantly by individual deals. The largest transaction of the year was the sale of Upper West for over €400 million. Hayfin's acquisition of Gropius Passagen was the largest transaction in the third quarter. Meanwhile, the growing momentum in the market segment of up to €50 million is a positive sign. At around €920 million, this represents an increase of around 25% compared to the previous year.
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Net prime yields remained largely stable at the end of the third quarter. The only exception was logistics properties, which saw a slight increase of 15 basis points to 4.40%. The yields for top offices in prime locations and high street buildings in city centre locations thus remained unchanged at 4.25% and 3.70%, respectively.