TRANSACTION VOLUME IN THE THIRD QUARTER AT ITS HIGHEST LEVEL FOR THE YEAR
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With a transaction volume of around €387 million, the Stuttgart investment market recorded a rather subdued interim result at the end of the third quarter. This represents a decline of around 9% compared with the same period last year and was also significantly below the long-term average (-60%), as expected. Investment activity has been dampened by the continuing sluggish economy and the resulting uncertainty and wait-and-see attitude of users. Nevertheless, a gradual increase in transaction volume has been observed since the beginning of the year. The third quarter reached around €203 million — the highest figure of the year to date — indicating a subtle improvement in market sentiment.
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While most registered deals at the beginning of the year were in the region of €10 million, there has recently been an uptick in the number of transactions within the €25–50 million mid-range segment. Consequently, the average deal size has doubled to €20 million. However, for transaction volumes to return to the levels seen in the years before the interest rate turnaround, deals in the triple-digit million range are essential. So far this year, no deals of this size have been recorded.
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Meanwhile, there has been very little change in net prime yields. Prime yields for office properties and premium highstreet retail buildings in top locations have remained unchanged at 4.40% and 3.85% respectively. However, the logistics segment has seen a moderate rise in prime yields of 15 basis points, reaching 4.40%.