MARKET ACTIVITY VERY SUBDUED
Munich's investment market continues to struggle under the difficult circumstances caused by the quick and substantial interest rate hikes by the central banks. In the past few years, especially in Munich, the market has been dominated by numerous large-volume core transactions of office properties. The changed financing conditions caused significant distortions especially in this market segment while the necessary adjustment processes for new and sustainable price levels still have a long way to go. Therefore it is not surprising that the Bavarian capital recorded the lowest result of the last ten years in the first quarter. With a transaction volume of €542 million, both the previous year's result and the ten-year average were missed by 50%. The fact that the purchase of a development site by the tech company Apple in order to expand its campus was the largest deal registered in the first three months is quite remarkable. Despite the weak transaction volume, Munich still holds the second place among the major German investment locations in a nationwide comparison. Only the German capital, Berlin, recorded a significantly higher investment of over one billion euros.