MORE TRANSACTIONS AND HIGHER VOLUME: STILL NOT AT USUAL LEVEL BUT ABOVE PRIOR YEAR
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With its half-year results, the Berlin investment market is following the nationwide trend at the mid-point of the year: the long-term average with a transaction volume of around €2 billion has not yet been reached again in the first six months (-37%). However, the fact that the previous year's figure was exceeded by almost 48% indicates a positive signal for the improved market sentiment in the capital.
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Furthermore, Berlin was once again able to repeat its top ranking in the nationwide market comparison. Also by the end of H1, Berlin is the number one investment market in terms of volume transacted. However, it should be noted that the finalisation of the KaDeWe transaction was a special factor that pushed up turnover. Nevertheless, the fact that the capital city also recorded the highest number of transactions underscores its position in the city rankings.
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A further indication of the slight upward trend in the Berlin market area is that almost 60 % of registered transactions took place in the last three months.
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In the course of the price adjustment processes, which are now well advanced, combined with increasing confidence that financing costs will not rise any further, the stabilisation trends in net prime yields have become more firmly established in the first half of the year: As a result, premium commercial properties in prime locations (3.70%), prime office properties (4.25%) and top logistics assets (also 4.25%) each maintained their values as of the end of 2023.