SIGNIFICANT INCREASE IN TURNOVER, CITY OF COLOGNE MOST IMPORTANT MARKET PLAYER
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Cologne's investment market recorded a high transaction volume in the first three quarters of 2024, narrowly missing the billion euro threshold at €924 million. The weak prior-year result was thus exceeded by more than 170%, representing by far the strongest increase of all A-locations. In a nationwide comparison of investment volumes, this puts the city in fifth place behind Berlin, Munich, Frankfurt and Hamburg.
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However, it should be noted in this very positive development that around two thirds of the result is attributable to just two major sales. These were the northern site of the Koelnmesse and the Rossio office complex. In both cases, the City of Cologne acted as buyer, making it by far the most important player on the investment market to date. Without this special influence, Cologne would have achieved a volume comparable to that of the previous year.
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The trend in prime yields in Cologne is also similar to that seen in all other major German investment locations. Having already stabilised in the first half of the year, there was no change in the third quarter, as expected. As a result, net initial yields for office buildings remain at 4.40%. They are somewhat lower in the logistics segment, where 4.25% is also to be quoted in the cathedral city. For retail high street properties, they remain at 3.85%.