MAJOR TRANSACTIONS DETERMINE THE MARKET
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Around €2.05 billion was invested on the Munich investment market by the end of the third quarter of 2024, exceeding the very low result of the previous year by a good 90%. Although the transaction volume is currently around 43% below the long-term average, the shortfall compared to the usual level in the Bavarian capital is lower than in many other A-cities. Accordingly, Munich is currently in second place in the ranking of top locations and is the only market behind Berlin to have exceeded the €2bn threshold to date.
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Major transactions from the retail segment in particular have contributed significantly to the comparatively solid performance. Two benchmark transactions in the high street retail segment were recorded in the first quarter with the purchase of 5 Höfe for around €700 million and Maximilianstrasse 12-14 for a good €250 million by two family offices. The largest transaction in the third quarter was the sale of the Pasing Arcaden from URW to Ingka Centres. In a market environment that is currently characterised primarily by smaller-scale sales, the share of turnover from major transactions above the €100 million mark stands out clearly among the A-locations, accounting for 65% of Munich's volume.
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Meanwhile, the stabilisation phase for prime yields has continued as expected. The net prime yield for office properties remains unchanged at 4.20%, which means that Munich is still the most expensive location. While the prime yield for logistics properties is quoted at 4.25%, the figure for retail properties in top high street locations is 3.45%.