MARKET ACTIVITY REMAINS SUBDUED AT MID-YEAR
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After the first six months of 2026, Berlin’s investment market recorded only a subdued half-year result. With an investment volume of around €633m, the market was almost 52% below the level recorded in the same period last year. While the capital can usually rely on large-scale deals, which often rank among the most significant transactions nationwide, activity in the single-asset segment has so far been limited exclusively to the smaller size categories of up to €50m. This is also reflected in the average deal size, which currently stands at a low €18m, compared with €45m on average over the past five years.
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The weaker mid-year result should be viewed in context, however, as other major locations are facing similar challenges in an uncertain market environment. At present, only Munich, with €1.24bn, has clearly pulled ahead and exceeded the €1bn mark. In a small-ticket driven market, Berlin at least remains the leading location in terms of deal count. The key volume drivers were the Berlin assets included in two portfolio transactions: the nationwide Power Foods portfolio, comprising food stores and retail parks, and a healthcare portfolio sale. Together, these pushed the portfolio share to a high 32%.
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Not least due to higher financing costs compared with the beginning of the year, slight upward pressure on net prime yields is currently evident. Accordingly, prime office yields moved out by 15 basis points to 4.50%, premium logistics assets increased by 10 basis points to 4.60%, while high-street assets had already risen to 3.95% in Q1.