MARKET ACTIVITY INCREASES NOTICEABLY ONCE AGAIN : GERMANY'S TOP LOCATION
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The Berlin investment market closed 2024 with an investment volume of around €3.55 billion, which is already significantly more buoyant than in the previous year. The 2023 result was exceeded by around 41%. Although the capital is still well below the long-term average (-54%), this is due not least to a high number of large-volume core transactions in 2019-2022, which could not be realized in this form under the current financing conditions. The number of registered transactions, which already exceeded the 100 deal mark again in 2024 and is therefore only around 33% below the usual level, is therefore likely to be a measure of the progress of the market recovery.
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A comparison of the major German investment locations once again shows that Berlin is at the top of the list for many investors. As usual, the capital is far ahead of Munich (€2.7 billion) and Hamburg (€2.3 billion), making it the only German location to exceed the €3 billion threshold in 2024.
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Meanwhile, the development of net prime yields continued to stabilize in the fourth quarter of 2024. Although the ECB began cutting key interest rates in the middle of the year and has continued to do so from meeting to meeting, this is not yet directly reflected in purchase price levels. While premium high street properties in prime locations are still quoted at 3.70%, both prime office properties and top logistics assets are quoted at 4.25% each.