HIGHEST VOLUME IN LAST SIX YEARS, 1ST PLACE AMONG GERMAN LOCATIONS
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The Munich investment market has made a strong start to 2024. With a total transaction volume of just under €1.28 billion, the previous year's weak result was more than doubled and the ten-year average was also exceeded by 9%. At the same time, the generated turnover represents the best result in the last six years. The Bavarian capital has thus taken the lead among German locations by a wide margin and is the only city that exceeded the € billion threshold in the first quarter.
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However, this exceptional result is primarily due to two major transactions, which together account for almost 60% of the investment volume. These are two inner-city commercial properties in exclusive locations. The Fünf Höfe were sold for around €700 million and the Maximilianstrasse 12-14 property for around €250 million. Both premium properties were acquired by private investors. This is another indication that Munich continues to be highly favored by long-term buyers in particular.
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Prime yields, which have risen continuously since mid-2022, stabilized as expected in the first quarter. This is attributable to the noticeable decline in inflation, which gives central banks flexibility to cut interest rates, resulting in more attractive financing conditions in the future. The current yield for office properties stands at 4.20%, for retail highstreet properties at 3.45% and for logistics properties at 4.25%.