Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1} Share on Xing

Perceived standstill in the CRE investment market - year-end rally will fail to materialise

Verena Bauer • 04/10/2022

A transaction volume of around EUR 12.6 billion was achieved on the German investment market for commercial real estate in the third quarter of 2022, bringing the result for the first three quarters to EUR 40.24 billion. This corresponds to Q1-Q3 5-year average. Compared to a year previously transaction volume has risen by 6 percent. 

Interest rate uncertainty will prevent year-end rally

The positive picture of the transaction volume compared to the previous year cannot hide the fact that the in-vestment market is in a difficult situation. The uncertainty among market participants regarding pricing triggered by the interest rate turnaround has significantly reduced the number of property transactions from the high levels of recent years. "The market remains well below its potential. The supply is there, but there is a lack of buyers. Core product in particular is being left on the shelf, as the fear of finding out in six months that one has bought too expensively is too great. This worry will remain for a few more months," explains Alexander Kropf, Head of Capital Markets bei Cushman & Wakefield in Deutschland. 

Economists agree that the ECB will continue to raise key interest rates, but it is unclear how often and by how much. This means that there is still no reliable financing band for investors. Against this background, there will be no year-end surge in 2022. C&W therefore forecasts a transaction volume of only slightly over EUR 50 billion for 2022 as a whole. This would bring it back to the level of the years pre-2017.

Yields continue to rise

The rise in yields that began in Q2 continued in Q3. In the top-7 markets, the median prime yield for office properties is now 3.23 percent (+24 basis points), for mixed commercial properties 3.45 percent (+8 basis points) and for logistics properties 3.61 percent (+50 basis points). The median prime yield for offices is thus higher than it has been since mid-2018. 

Investment Market Germany Q3 2022

Munich remains the most expensive office market (3.00 percent), followed by Frankfurt (3.10 percent), Hamburg (3.15 percent) and Berlin (3.20 percent). For mixed commercial properties, Munich and Düsseldorf are the most expensive markets, both with prime yields of 3.10 percent. Logistics properties in Stuttgart (3.70 percent) are 10 basis points higher than in the other six top regions. 

In view of the expected further interest rate hikes, C&W expects yields to continue to rise in the coming months.

Sales volume of retail and logistics properties records strong increase 

In the year to date, office properties have accounted for the largest proportion of transaction volume, at around 41 percent and EUR 16.34 billion, confirming their customary first place among investors. However, their transaction volume has not increased compared to the same period last year, despite two large deals in the first quarter (acquisition of “alstria office REIT-AG”, > EUR 4 billion; Marienturm in Frankfurt/M., > EUR 800 million). 

The situation is different for logistics and industrial properties. Here, the transaction volume increased by 38 percent year-on-year and reached a new record of EUR 7.92 billion. This development was driven in particular by several large-volume takeovers and portfolio sales in the first half of the year. 

In the retail property segment, an increase in the stake in Deutsche Euroshop AG held by Oaktree and Cura Vermögensverwaltung for well over EUR 1 bn in the third quarter ensured that the transaction volume for retail properties rose by 20 percent year-on-year to EUR 6.3 bn. At the same time, this is the second-largest deal in the current year and the largest deal involving shopping centres in recent years. 

The contribution of hotel transactions to transaction volume was EUR 1.15 billion or 3 percent. Compared to the previous year, this was a fall of around 7 percent. 

The EUR 8.53 billion accounted for by transactions outside the four classic main types of use was generated primarily by sales of mixed-use properties and development sites. These two asset classes account for just under 16 percent of total transaction volume.

Investment Market Germany Q3 2022

Single-property transactions dominate

Portfolio transactions, which also include corporate investments such as in Deutsche Euroshop AG and acquisitions such as that of “alstria office REIT-AG”, accounted for 35 percent of the transaction volume. Individual property transactions dominated, with 65 percent. International capital contributed 46 percent to the overall result and invested mainly in large volume assets. For example, in the third quarter Swiss Life AM acquired the Voltaire office property in Berlin for more than EUR 400 million. 

Berlin strongest top-7 market in terms of transaction volume

Around EUR 21.1 billion was invested in the top-7 markets in the first nine months of 2022, which corresponds to 53 percent of the total national market transaction volume. Compared to the same period last year, this increased only slightly, by two percent. 

Berlin leads the ranking with a volume of EUR 5.9 billion It is followed by Frankfurt with EUR 4 billion, Hamburg with EUR 3.6 billion, Munich with EUR 2.9 billion and Düsseldorf with EUR 2.8 billion. Cologne just exceeded the EUR 1 billion mark, Stuttgart remained below it, at around EUR 0.9 billion. Düsseldorf and Hamburg in particular, but also Stuttgart, recorded increases in turnover, while the other markets remained below their previous year's figures.


verena bauer
Verena Bauer

Head of Business Development Services, Germany • Frankfurt


Tina Reuter Head of Germany Cushman & Wakefield
Tina Reuter confirmed as Head of Germany at Cushman & Wakefield

Global real estate services firm Cushman & Wakefield has confirmed Tina Reuter as its Head of Germany. She has held the position on an interim basis since December 2023 and succeeds Yvo Postleb who has decided to leave the business to continue his career outside Cushman & Wakefield.

Verena Bauer • 18/04/2024

Investment Market Munich
Q1 results for Munich’s real estate investment market better than full year 2023

Munich’s commercial real estate transaction volume reached EUR 1.24 billion in Q1 2024, a higher result than for the whole of 2023 (EUR 1.18 billion). This is the first time since Q3 2022 that the transaction volume has exceeded the one-billion-euro threshold.

Verena Bauer • 15/04/2024

Office Market Munich
Munich’s prime monthly office rent breaks the EUR 50 mark and reflects demand pressure in the city centre

Take-up of around 139,000 sq m recorded in the Munich office letting market area in Q1 2024 – an increase of 24 percent compared to the equivalent quarter last year.

Verena Bauer • 11/04/2024


Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
Cushman & Wakefield Asset Optimisation Guides

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All