MODERATE START TO THE YEAR WITH ONLY MODERATE INVESTMENT TURNOVER SO FAR
-
Cologne's investment market got off to a very subdued start to the year in the first quarter. The transaction volume totalled only €87 million, corresponding to a decline of 40% compared to the previous year's result, which was also not overly strong. The ten-year average for the first three months was thus missed by 71%. At the same time, this is the third-lowest figure in the last 20 years. The main reason for this moderate result is the very low number of deals recorded to date, which is in the single-digit range. However, market momentum has also been slowed by the fact that hardly any major deals have been registered to date.
-
Against this backdrop, it is not surprising that Cologne ranks second to last among the A-locations (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart) in a nationwide comparison. Together with Stuttgart, the cathedral city only achieves a double-digit investment turnover. In the Swabian metropolis, however, this figure is even lower than in Cologne at €71 million.
-
As in all other cities, net prime yields stabilised in the first quarter at the level reached at the end of the previous year. This is due on the one hand to the rather subdued market activity to date and the low number of deals, and on the other hand to the turbulence and great uncertainty in connection with fiscal packages and tariffs. As a result, prime yields for premium office properties remain unchanged at 4.40%, retail properties in prime high street locations are still expected to yield 3.85% and logistics properties are still quoted at 4.25%.