HALF-YEAR RESULT CLEARLY BELOW AVERAGE
With an investment volume of around €1.6 billion, the Munich investment market registered a result clearly below-average at mid-year. The fact that the exceptional volume of the previous year (H1 2021: €3.4 billion) was missed is hardly surprising, however, the 10-year average was also failed by a good 34%. While the start of the year was still very respectable with a total volume of almost €1.1 billion, the transaction momentum cooled considerably in the second quarter. In the spring, only just under €500 million were placed in the market. Thus, for the moment, the market has sunk to a level it is no longer used to from the past decade. Against the background of the noticeably changing financing environment since the outbreak of the Ukraine war and the deteriorating economic outlook, Munich seems to have entered the price-finding phase of buyers and sellers, which can now be observed nationwide, earlier than other markets. Transactions are now taking much longer as both sides have to agree on a new price level that works for both. What the current figures do not yet reflect is the basic confidence of investors in Munich as a business location, but this can currently be felt in numerous ongoing investment deal negotiations.
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