SUBDUED MARKET ACTIVITY IN COLOGNE, BUT DYNAMICS INCREASED FROM QUARTER TO QUARTER
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In the first three quarters of 2025, transaction activity in the Cologne investment market has been rather subdued. The commercial investment volume totalled around €737 million in the first nine months. This is a 20% decline compared with the same period last year and approximately 32% below the long-term average. Consequently, Cologne ranks fifth among the A-locations, just behind Düsseldorf. Unlike last year, the Cologne market currently lacks major sales drivers. So far this year, only one deal in the triple-digit million range has been recorded. The generally low number of transactions is also responsible for the moderate interim results. Consequently, the continuously improving market sentiment has not yet resulted in a significant increase in investment volume.
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However, it is encouraging to see a significant rise in market activity from quarter to quarter. Following a slow start to the year, with an investment volume of only €87 million, a volume of €226 million was recorded in the second quarter. Transaction activity gained further momentum during the summer, generating around €424 million in the Cologne market area. This is the second-best quarterly result since early 2022. A full 58% of turnover was thus invested between the of July and the end of September.
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Net prime yields remained largely stable at the end of the third quarter. The only exception was logistics properties, which recorded a slight increase of 15 basis points to 4.40%. Office properties remained unchanged at 4.40%, while retail high street assets in prime city centre locations yield 3.85%.