DUE TO ONE MAJOR DEAL: HIGHEST INCREASE IN INVESTMENT VOLUME OF ALL A-CITIES
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Cologne's commercial real estate investment market shifted gears in the first half of the year 2024, recording a rise in transaction volume by an impressive 250% year-on-year to €652 million. This is by far the highest increase of any major German investment location in H1. It should be noted, however, that almost 60% of this pleasing result is attributable to just one deal, namely the City of Cologne’s purchase of the northern part of the Koelnmesse exhibition centre.
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Thanks to this special transaction, Cologne is the only investment market in Germany to have returned to approximately the ten-year average in the first half of the year. Without this special effect, however, the growth rate would only be comparable to that of the other major locations. The recorded €652 million at mid year put Cologne in fifth place among Germany's A-cities, ahead of the traditionally much stronger Hanseatic city of Hamburg.
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The development of prime yields is in line with other major German cities. After stabilising in the first three months of the year, the yield level solidified in the second quarter, as expected, with no change. Net prime initial yields for office properties remain at 4.40%. In the logistics segment, they are slightly lower at 4.25%. For high street retail properties, they remain at 3.85% at the end of the first half of the year.