ONLY SMALL DEALS IN THE FIRST HALF OF THE YEAR, BUT LARGER INVESTMENTS ARE ON THE HORIZON
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It is clear after the first half of the year that the momentum of the Frankfurt investment market is much brisker than the half-year results for 2025 suggest. With total volume of around €237 million, Frankfurt has recorded low transaction volume so far. After a solid start to the year, the market lost momentum over the past three months. However, this is not a unique phenomenon for Frankfurt: overall, transaction volumes were lower in the second quarter than at the beginning of the year, both nationwide and in many A-locations.
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A key difference between Frankfurt and the top markets of Berlin and Munich is that large-volume properties have already changed hands in the latter two locations this year, with the Upper West office tower and Rosenheimer Straße 139. However, this important segment of the Frankfurt investment market could receive a noticeable boost in the short or medium term. The exceptionally high record result in the office letting market, coupled with the realization that large-scale deals are once again possible in the leasing segment, should boost office investments in Frankfurt. Until the end of June, investment activity across all asset classes remained small-scaled, staying below the €50 million mark.
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Given that no reference transactions have been registered in the absolute prime segment so far this year, the top yields have remained at their Q1 levels. Top office properties are quoted at 4.50%, the premium high street assets in prime retail locations at 3.75%, and logistics properties at 4.25%.