At a Glance Q2 2024

Retail investment market Germany

Retail-Investmentmarkt Deutschland

RESULT BETWEEN PREEVIOUS YEAR AND AVERAGE -  RETAIL STILL IN THE LEAD IN ASSET CLASS RANKING

  • Two important trends can be derived from the transaction volume on the retail investment market at the mid-year point. On the one hand, the overall result for the first six months, at just over €3.6 billion, is higher than last year (+92%), but at the same time below the long-term average (-6%). Although this reflects the noticeable improvement in market sentiment towards the middle of the year, the average volumes of the past ten years are not yet achievable.

  • On the other hand, retail investments were able to defend their leading position in the asset class comparison, which they already held after the first quarter. With a market share of 30% in H1, they continue to lead the ranking of the most important property types, ahead of logistics (around €2.8 bn; 23% share) and office properties (€2.2 bn; 18% share). It is pleasing to note that retail investments not only had the highest market momentum due to large deals, but also recorded the highest number of transactions, indicating the good competitive position of the retail segment compared to other asset classes.

  • Given that department stores account for 39% and other high street properties for 37% of total investment volume, city centre properties stand out in terms of the distribution of sales by property type. In the department store sector, the sale of KaDeWe to the Central Group and RFR's acquisition of a majority stake in seven Galeria stores are the most notable transactions. In the field of high street properties, the major deals of Fünf Höfe and Maximilianstrasse 12-14 in Munich are worth mentioning, as well as many smaller deals. As the third important pillar. The retail warehousing segment also has a substantial share of 23%.

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