INVESTMENT MARKET RECOVERY IS STILL PENDING
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Leipzig's investment market is still treading water at the start of 2025 instead of picking up momentum again as hoped. With a transaction volume of just €33 million in the first quarter, Leipzig achieved one of the weakest results since investment activity has been recorded, which is also reflected in the fact that the ten-year average was missed by 83%. Even the already modest figure for the previous year was undercut by more than half. It is not only the volume that is below average, but also the number of transactions, which is limited to just a handful of small and medium-sized deals.
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However, it is not only Leipzig that is confronted with the still very moderate market dynamics. Many cities, especially B-locations, still only have very low investment volumes. This is because buyer groups in B cities are often somewhat more locally orientated and are generally more cautious in a difficult economic environment, as well as the generally lower product range. However, even traditionally large investment locations, such as Stuttgart, only achieve marginally higher sales than Leipzig.
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Since no premium transactions have yet been recorded, prime yields have remained stable. As a result, prime yields for office properties remain unchanged at 5.30%, commercial properties are still at 4.80% and logistics properties are still quoted at 4.45%.