SUBDUED FIRST HALF OF THE YEAR, MARKET GAINS MOMENTUM IN Q2
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The Cologne investment market experienced subdued transaction activity in the first half of the year. Investment volume amounted to €313 million, which is 52% lower than last year's result and 49% below the long-term average. The low transaction volume is due to the small number of transactions recorded so far, particularly the complete absence of major transactions exceeding €100 million. As on the other top investment markets, the noticeable improvement in investor sentiment has not yet been reflected in significant increases in transaction volumes.
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Following a weak first quarter (€87 million), the second quarter recorded a significant increase in transaction activity (€226 million). This increase was evident in both volume and the number of registered transactions. The current result puts Cologne in fifth place among A-locations, ahead of Frankfurt and Stuttgart. The sale of the Pullman Cologne for €62 million in the first quarter remains the largest transaction in Cologne by far.
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As in the other cities, prime net yields stabilized in the first half of the year at the level reached at the end of 2023. Yields for prime office properties remained at 4.40%. Premium high street properties in prime retail locations are expected to yield 3.85%, while logistics properties are quoted at 4.25%.