Q2 MARKET ACTIVITY DRIVEN BY SMALLER DEALS
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The Cologne investment market posted a mixed performance in the first half of 2026. With a transaction volume of €349m, investment activity exceeded the relatively weak prior-year result by 12% but remained 43% below the long-term average of €610m. Following a strong start to the year with €256m transacted in the first quarter, market momentum slowed noticeably in the second quarter, which contributed only a further €93m. As a result, Cologne slipped to sixth place among Germany’s major investment markets, although it continues to rank ahead of Stuttgart.
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Notably, transaction activity remained stable in terms of deal count during the second quarter, but deal volumes were significantly smaller. While the first quarter saw one transaction in the €50–100m range and three deals between €25m and €50m, the largest deal completed in the second quarter fell into the €25–50m segment. This trend is also reflected in the average deal size, which currently stands at approximately €17m, underscoring the comparatively small-scale nature of market activity.
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The volatile financing environment and ongoing geopolitical uncertainties have led to yield expansion across all major asset classes year-on-year. Prime logistics (+35 bps) and office (+20 bps) yields have each increased to 4.60%. At the same time, prime high-street retail properties are currently priced at a 4.00% prime yield (+15 bps year-on-year).