INVESTMENT VOLUME POSTS SLIGHT INCREASE
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The German real estate investment market in the second quarter was shaped by the military conflicts in the Middle East and their implications for overall economic development, as well as for financing conditions, which are a key factor for real estate investments. Commercial investment volume amounted to a total of €12.3bn in the first half of 2026, up 8% year-on-year. Following a lively start to the year, with around €6.9bn placed in the first quarter, transaction momentum slowed noticeably in the second quarter, with volume reaching €5.4bn. However, the second quarter did not represent a standstill, but rather a renewed recalibration of the market. In the current environment, risks are being repriced. Refinancing issues, more defensive assumptions regarding occupier markets and higher risk premiums have once again reshaped negotiations in some asset classes.
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Net prime yields recorded noticeable increases across all asset classes in Q2 for the first time since the end of 2023. Yield adjustments are particularly evident where financing costs coincide with greater uncertainty regarding rental growth, asset quality, operator structures or sensitivity to the economic cycle. For offices, the average net prime yield across the A-cities rose to 4.49%, while the logistics segment increased to 4.60%. Shopping centres, at 6.00%, and DIY stores, at 6.20%, also recorded higher yields than in the previous quarter. By contrast, the average net prime yield in the high-street segment remained unchanged at 3.85%. Prime yields for food-anchored retail parks as well as supermarkets and discounters also remained stable, at 4.65% and 4.90%, respectively.