INVESTMENT VOLUME UP BY AROUND ONE-FIFTH YOY
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The German office investment market recorded a transaction volume of €3.2bn in the first half of 2026, maintaining its position as the leading commercial asset class. While the long-term average of €7.9bn remains some way off, the market has continued the gradual recovery that began following its cyclical trough in 2024. As a result, transaction volume currently stands 19% above the level recorded in the corresponding period of the previous year.
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However, market momentum has moderated somewhat in recent months. The Iran war and rising energy prices have shifted interest rate expectations and increased uncertainty, causing transaction processes to take longer once again. At around €1.3bn, investment volume in the second quarter was therefore somewhat lower than in the preceding quarters. Even so, more than 50 transactions were completed during Q2. The market has demonstrated that deals are still getting done, particularly where vendors have shown a clear willingness to adjust expectations to the changed market environment.
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Against this backdrop, net prime yields are facing modest upward pressure. Higher financing and opportunity costs have resulted in selective yield adjustments of between 10 and 20 basis points across several markets. While Munich (4.20%) and Frankfurt (4.50%) held steady quarter-on-quarter, yields moved out in Hamburg (4.35%; +10bps), Berlin (4.50%; +15bps), Düsseldorf (4.65%; +15bps), Stuttgart (4.65%; +15bps) and Cologne (4.60%; +20bps).