GOOD START TO THE YEAR: ALMOST ONE BILLION INVESTMENT VOLUME IN Q1
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The start to the year in Berlin was significantly better than in the two previous years. With a transaction volume of €986 million, the volume increased by 116% compared to the same period of the previous year. The sale of the Upper West to the Schoeller Group family office for well over €400 million made by far the largest contribution. However, even without this benchmark deal, the Berlin investment market would have recorded a noticeable increase in turnover. The major deal outlined above is the only deal in the three-digit million euro range. The positive development is therefore not least the result of a more lively market dynamic in the small-scale and above all medium-sized segment. This is also supported by the fact that the number of recorded transactions has increased by more than a third.
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In the nationwide ranking, the German capital has thus regained the top position it lost to Munich in the first quarter of 2024. The Bavarian capital is currently only in second place with an investment volume of €508 million.
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Contrary to the expectations of almost all market participants at the end of last year, the situation for the further development of yields has changed noticeably. This is due to the rise in financing costs in recent weeks, higher yields on German government bonds and the central banks' key interest rate decisions, which are currently difficult to predict. Against this backdrop, net prime yields remained stable in the first quarter and are unchanged at 4.25% for office and logistics properties and 3.70% for premium high street properties in prime retail locations.