HIGHEST INCREASE IN TURNOVER OF ALL LOCATIONS; NO MAJOR DEALS YET AGAIN
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The Cologne investment market was able to significantly increase its transaction volume compared to the previous year. At €145 million, the result was almost tripled. As a result, the Cologne recorded the strongest growth (+190%) of all major investment locations. From a long-term perspective, however, this is a moderate result that is only around half as high as the ten-year average. The high level of interest rates and the difficult economic environment continue to hold the investment market firmly in place and prevent investment volumes of past levels.
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The persistently difficult conditions are particularly evident in the fact that, as in the same period of the previous year, no major transactions above €50 million have been recorded. Looking only at investment turnover in the market segment up to €50 million, however, the best result in the last six years was achieved in the first quarter of 2024. This indicates that the general mood among many investors is generally more positive than the investment volume suggests and that the lack of major deals contributed disproportionately to the subdued result.
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Following approximately one and a half years in which prime yields had only moved in one direction, namely upwards, they were stable at the beginning of the year. This development is not surprising given the noticeable fall in inflation and the resulting expectation of the first interest rate hikes before the end of the year. Prime yields for office buildings currently stand at 4.40%, for retail properties at 3.85% and for logistics assets at 4.25%.