HIGHLY FRAGMENTED MARKET WITH SOLID DEAL ACTIVITY
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The Stuttgart investment market closed the first half of 2026 with a satisfactory result, particularly against the backdrop of continued market challenges. Transaction volume reached approximately €247 million by the end of June. While this figure remains 57% below the ten-year average of just over €575 million, it represents a clear improvement on recent years, exceeding the results of the prior two years by almost 35% and 38%, respectively.
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Another encouraging sign is the number of transactions completed. With almost 20 deals, investment activity compares favorably with the long-term average since 2017 (23 transactions annually at mid-year). The relatively modest transaction volume is primarily attributable to the small average deal size, which currently stands at just €13 million, representing a historically low level. The most notable transactions included the acquisition of KarlsOffice, announced in January 2026, and the Nanz Quarter mixed-use development in the Botnang district. Although neither deal had a major impact on overall transaction volume, both transactions reflect the healthy level of investor activity within a market currently characterized by smaller lot sizes.
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Against the backdrop of ongoing geopolitical uncertainty and fluctuating financial market conditions, prime yields increased moderately during the first half of the year. In the premium office segment, the prime yield rose by 25 basis points to 4.65%. Prime logistics assets recorded a 10-basis-point increase to 4.60%, while prime high-street retail yields moved out by 5 basis points to 4.00%.