In the first quarter of 2026, the Munich investment market was able to create a good basis for the rest of the year: With a transaction volume of around €740 million, the weak balance sheet of the previous year was exceeded by almost 46%. A look at the comparative periods of the last five years shows that high results have been slightly above the €1 billion mark (Q1 2024: €1.28 billion), while lower quarterly sales are currently tending towards €500 million (Q1 2025: €508 million). Thus, the current volume is exactly between the pleasing and the more subdued starts to the year since 2022. This is the result of the analysis by BNP Paribas Real Estate.
In this context, it is noteworthy that year after year, prominent major deals are recorded in Munich that are among the sales with the largest volume of the respective quarter in their asset class or even nationwide. The Alte Akademie is the largest single retail transaction of the first three months. Especially against the background that major deals continue to be observed rather sporadically and often drag on over long marketing periods, it is all the more pleasing that Munich has to report such transactions again and again due to its very good framework conditions and prospects. However, the number of deals, which at over 20 has been high both in terms of location and compared to recent years, also speaks for good market dynamics.
“There have been no market-relevant shifts in prime yields since the end of 2025. This means that premium retail assets in Munich continue to trade at 3.45%, top office buildings in the best micro-locations remain at 4.20% and the logistics sector can achieve a peak of up to 4.50%,” explains Michael Morgan, Munich branch manager of BNP Paribas Real Estate GmbH.
Major deals in city locations again decisive
In view of the fact that so far only one quarter has been included in the distribution of volume across property types, size classes and locations, the structuring of the current turnover should initially be seen as a snapshot. However, as in recent years, the trend that location quality plays a major role is also reflected in the current result: a good 60% is accounted for by central inner-city locations, with the sale of older existing office buildings by the City of Munich being the main factor in addition to the Alte Akademie.
Away from the city of Munich, on the other hand, investments were made exclusively in the small and medium-sized segment, with development sites and the arms industry, which is increasingly coming into focus, among other things.
The individual larger investments are also decisive for the revenue contributions of the asset classes: Driven by office deals by the public sector and the Alte Akademie, the office and retail sectors are each represented with around a third of the result, while the collective category “Other” stands at a good 20% to date. Hotels are quoted at just under 12% and logistics properties are only at just over 2% so far.
Prospects
After the first good interim results, the Munich investment market can start the second quarter with confidence overall. On the one hand, it should be pointed out that the result was driven up by special effects such as the sale of the former Signa property Alte Akademie as well as office investments within the urban sector. On the other hand, however, the high number of deals compared to the location and the best turnover among the top markets underlines how well the Bavarian capital will continue to position itself in 2026 in the competition of the most important investment markets. The important role played not only by the macro location, but above all by the micro location in uncertain times, is also reflected in the share of sales in central locations and in the major deals that are usually located here.
In order for the outlook to remain positive, the development of the geopolitical trouble spots will be crucial, which, as in the past, could have a serious impact on financing conditions at any time. In such an uncertain environment, the many deals in the small and medium-sized segment, which provide momentum beyond the sometimes complex financing models of major transactions, are all the more gratifying.
“Against the background of the influencing factors outlined above, which are very difficult to predict, there are no signs of an increase in prime yields in Munich from today’s perspective. However, an adjustment remains possible for the rest of the year,” says Michael Morgan.
Link to the market report: https://www.realestate.bnpparibas.de/marktberichte/investmentmarkt/muenchen-report
