Following a historic record year in 2021, Cologne's commercial investment market also started 2022 with a new record in the first three months.
With a transaction volume of €762 million, the result is more than three times higher than in the first quarter of 2021 (Q1 2021: €235 million).
At 56%, more than half of the transaction volume was attributable to office properties. The acquisition of the Alstria portfolio by Brookfield accounted for a large share of this. The second most popular asset class was mixed-use properties, which accounted for over 25%. Retail properties accounted for just under 8%.
Core and Core+ assets are particularly attractive to many investors. Value-add assets are also in demand, but there is currently a lack of suitable products on the market.
Despite the many uncertainties, such as rising interest rates on the capital market and the increase in construction prices, prime yields continue to fall. In office real estate, the prime yield fell by a further 25 basis points to 2.6% compared with the previous quarter.
The figures for the first quarter also point to a positive development for 2022 as a whole. Despite the current circumstances, such as the war in Ukraine, rising capital market interest rates, and construction costs, demand remains almost unabated. The product range is also currently high for Cologne market conditions, so we expect the 3.0 billion mark to be broken again.
