STRONG FIRST HALF-YEAR 2024, 2ND PLACE AMONG GERMAN TOP MARKETS
-
Around €1.5 billion was invested on the Munich commercial real estate market in the first six months of 2024. As a result, the low investment volume from the previous year was more than doubled. However, the strong market momentum from the beginning of the year (with an investment volume of €1.3 billion in q1) was not carried over into the second quarter. In consequence, Munich was relegated to second place by the German capital. Munich’s half year result is around 35% below the long-term average.
-
The overall solid performance is therefore due in particular to the very good first quarter. Two commercial properties in prime locations were sold for €700 million and €250 million respectively. It is striking that no deal exceeded the €50 million mark in q2.
-
The distribution of the investment volume across the size categories is also determined by the two major deals concluded in q1. They account for a cumulative investment volume of €950 million, which in absolute terms represents only around -9% less than the long-term average for the large-volume segment. In contrast, the market share of 64% in the size segment over €100 million is well above the 10-year average (44%).
-
As expected, the stabilization of prime yields that began in the first quarter has continued in the second one. Currently, office properties are yielding 4.20%, mixed-use commercial properties in the city centre 3.45% and logistics properties 4.25%.