Leipzig’s investment market can look back on its best half-year balance sheet since 2022.
In the first half of 2026, a transaction volume of €278 million was recorded. In absolute terms, the result of the trade fair city is still below its long-term average, but at 17% the gap to it is significantly smaller than in the top cities. This is the result of the analysis by BNP Paribas Real Estate.
“The reason for the very solid performance overall is the strong start to the year at €209 million. Here, the Höfe am Brühl shopping center was a clear sales driver with a three-digit million amount. Although the transaction frequency did not decrease over the course of the year, it was mainly only deals of less than €10 million that were concluded. However, the sale of a hotel in the mid-double-digit million range as part of a portfolio sale was an exception here,” says Stefan Sachse, Managing Director of BNP Paribas Real Estate GmbH and Leipzig branch manager.
The general conditions for the Leipzig investment market, as well as for the other top markets, remain challenging. The weak economy and geopolitical uncertainties continue to have a dampening effect on market activity. Accordingly, prime yields rose within a twelve-month period: for commercial buildings to 5.00% (+20 bps), for logistics properties to 4.80% (+35 bps) and for premium office properties to 5.60% (+30 bps).
Logistics and office still weakly staffed, apart from the major deal market currently more fragmented
In the first half of the year, retail clearly dominates the Leipzig market with a market share of 60%. The above-average share in a long-term comparison (Ø 10 years: 29%) is mainly due to the acquisition of a majority stake in the Höfe am Brühl shopping centre. The hotel segment follows in second place, with a transaction volume of €50 million attributable to two deals.
City and Cityrand account for a cumulative 76% of the transaction volume. This means that the central locations continue to shape market activity. The two largest transactions of the first half of the year made a significant contribution to this. In the further course of the year, however, the distribution is likely to balance out somewhat, as there are currently also attractive investment opportunities in the secondary locations.
The size class ranking is led by the segment above €100 million, which is largely determined by the named major deal. It is striking, however, that no deals have been registered so far in the otherwise high-turnover segment between € 50 million and € 100 million (Ø 10 years: 27%). Since, in addition to the major deal, the segment of medium-sized transactions between €25 million and €50 million is also well occupied, with a market share of 24%, the average volume per deal is comparatively high at €25 million.
Prospects
Leipzig’s investment market is comparatively robust in the middle of the year. The stable transaction frequency, the well-filled pipeline and the continuing interest in investment opportunities make it clear that investors are still willing to allocate capital in the trade fair city if prices are in line with the market. Additional impetus could also come from the office segment, which has so far been restrained, in the second half of the year.
However, the framework conditions remain challenging. The weak economy, geopolitical uncertainties and the recently more volatile financing environment are likely to continue to influence investment activity in the coming months. Nevertheless, the continuous market activity and the large number of ongoing marketing and negotiation processes speak for a continuation of the market recovery.
“Against the backdrop of a slight economic recovery and continued robust user markets, a moderate revival of market activity is expected in the second half of the year. If some of the ongoing major marketing and transaction processes are successfully implemented, an investment volume of over €500 million for the year as a whole and thus a return to the level of the 5-year average seems realistic,” says Hannes Baderschneider, Leipzig branch manager of BNP Paribas Real Estate GmbH.
