CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

Munich transaction market strong, investment pipeline even stronger

Verena Bauer • 11/10/2021

Munich commercial properties with a volume of EUR 883 million were bought and sold in Q3 2021. This brings Munich’s cumulative transaction volume in the first three quarters of 2021 to around EUR 3.9 billion, reports real estate consultancy firm Cushman & Wakefield. Compared to the same period last year, this corresponds to an increase of 3.8 per cent.

Office properties remain the strongest asset class
The decisive factor for the result in the 3rd quarter were three large-volume sales above the EUR 100 million mark. The three deals are office properties, including the Quadriga in Unterföhring and the Messe Campus München Riem. Together they account for almost 44 per cent of the recorded transaction volume. In the year to date, the size category above EUR 100 million has accounted for 58 per cent of total transaction volume - making it the main driver of the Munich investment market. Office properties continue to be the clear focus of investors and, with a share of 82 per cent of the commercial transaction volume, are the dominant use-type. Hotel properties follow well behind in second place with around six per cent. Transaction volume for logistics and industrial properties played a subordinate role in Munich’s investment market with a share of three per cent. The retail contribution is than one per cent.

Jan Isaakson, Head of Capital Markets Munich at Cushman & Wakefield, explains: "The confidence of many office investors has returned this quarter. Despite the various different back-to-office scenarios and the open question about the future space requirements of companies, investors agree that the office will continue to play a central role in the future. Another important issue for investors is ESG. Many investors require ESG compliance for potential acquisitions. Overall, our outlook for the coming months is positive. Due to the currently increasing pitch activity, it may be assumed that there could be a year-end spurt in sales in Munich and that a transaction volume of 5.0 billion euros or more is realisable. Further sales should then also lead to a strong transaction volume in Q1 2022."

Low-risk investments in focus
73 per cent of the commercial real estate investment volume in the first nine months was attributable to low-risk properties in the Core and Core+ risk classes. Opportunistic and value-add properties played only a subordinate role in transactions in the Munich investment market so far this year. The participation of foreign capital in the first three quarters was 43 per cent and thus significantly above the previous year’s figure of 31 per cent.

Prime yields continue to compress
The prime yield for core office properties in very good city-centre locations was 2.50 per cent at the end of the third quarter, ten basis points below the value twelve months ago. Due to the high demand, slight yield compression is expected to the end of the year. In non-central locations, the prime yield is 3.30 per cent, which will probably also move in by the end of 2021. 

Investmentmarkt München Q3 2021

The prime yield for logistics properties is currently 3.10 per cent, 55 basis points lower than at the same point last year and reflecting the high competition for properties of this type. Further yield compression is to be expected. 

Likewise, slight compression in prime yields for city centre commercial properties are again being recorded. The prime yield currently stands at 3.15 per cent having compressed by five basis points over the past twelve months. 

 

   

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Cushman & Wakefield Europe's Living Revolution
Europe's housing revolution

The European residential market is set for significant growth until 2040, according to the report ‘Unpacking Europe's Living Revolution’ by Cushman & Wakefield. 

Verena Bauer • 17/07/2024

Cushman & Wakefield Investment Outlook
Investment Outlook Sommer 2024

Activity on the German investment market remains subdued overall and continues to be overshadowed by high borrowing rates and a weakening economy. Against this backdrop, Simon Jeschioro has drawn up forecasts for the further development of the property investment markets.

Verena Bauer • 15/07/2024

Press Release Cushman & Wakefield
TIME Score Index from Cushman & Wakefield

Cushman & Wakefield has developed the TIME Score Index to simplify the presentation of key figures important for investment decisions. The index — Timing Investment Market Entry/Exit — identifies important changes in the commercial property environment.

Verena Bauer • 12/07/2024

INSIGHTS

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!
20/03/2024
Cushman & Wakefield Asset Optimisation Guides
Insights

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
Insights

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

CAN'T FIND WHAT YOU'RE LOOKING FOR?

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.
MORE OPTIONS
AGREE AND CLOSE
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
SAVE SETTINGS