MUNICH IS SECOND PLACE BEHIND BERLIN ; INVESTMENT VOLUMEN OF OVER €500 MILLION
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The Munich investment market started 2025 with a transaction volume of a good €500 million. This puts the Bavarian capital in second place among the top locations, well behind Berlin (just under €1 billion) and just ahead of Hamburg (around €460 million).
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This result was 54% below the long-term average (average 10 years: €1.1 billion) and 60% below the previous year's quarterly result. Nevertheless, Munich's investment volume is above the average volume of the top markets (around €360 million). This underlines the fact that the improved market sentiment in the other top locations has not yet been reflected in a stronger increase in investment turnover. It should also be noted that the high investment turnover in Q1 2024 was driven particularly strongly by the major ‘5 Höfe’ deal (€700 million).
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In the first three months of 2025, there was a particular lack of larger deals over €50 million that could have helped to improve the result. However, the sale of the R139 office tower in Berg am Laim was a major transaction worth around €150 million. This deal is a positive sign for the Munich investment market and a signal to the market that office investments are increasingly becoming the focus of investors again.
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Prime yields remain constant at the level found since the beginning of 2023. Office properties are still quoted at 4.20%, high street properties in prime retail locations at 3.45% and logistics properties at 4.25%.