HIGH DEAL COUNT BUT LOW AVERAGE TRANSACTION VOLUME
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The German retail investment market presents a mixed picture after the first three quarters of 2026. On the one hand, the number of transactions was above average compared with the past three comparable periods. On the other hand, this has not translated into higher investment volume due to a historically low average deal size of just €17m. At just under €3.1bn, total investment volume was down almost 25% year-on-year. This was mainly due to subdued market activity in the past two quarters, with volumes of €892m and €829m, respectively, both well below the €1bn mark. However, the retail segment already demonstrated at the beginning of the year that quarterly volumes of almost €1.5bn are still achievable in the current market environment, with around €1.37bn recorded in Q1.
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Accordingly, the largest transactions so far still date from the first half of the year. In the portfolio segment, these include the sale of the Powerfood portfolio, comprising 37 food stores and retail parks. Among single deals, notable transactions included the high-street properties Alsterhaus in Hamburg and Alte Akademie in Munich, as well as the Höfe am Brühl shopping centre in Leipzig. In addition to Alte Akademie, around 50 mostly smaller high-street property investments were recorded, with this segment increasing its share to 25%. However, the food-anchored and retail warehouse segment remains clearly dominant, accounting for more than 45% of investment volume and 57% of transactions. Shopping centres also recorded a solid number of transactions and accounted for almost 18% of total volume, while department stores currently make the smallest contribution at just under 12%.