Berlin is once again at the top of the A-locations, investment turnover only slightly below the previous year's level

The transaction volume in Berlin totalled around €3.25 billion, slightly below the previous year's result (-8.5%). The average of the last three years, on the other hand, was slightly exceeded at just under 5%. Against the backdrop of the still difficult environment for the investment markets, the result is quite satisfactory. This is especially true when you consider that around one billion euros of last year's turnover is attributable to the sale of Signa's KaDeWe to the Central Group. If this extraordinary financial statement is disregarded, the investment volume would have increased by almost a quarter. The largest transaction of the year in the capital was the sale of the Upper West for more than €400 million. This is the result of the analysis by BNP Paribas Real Estate.

As in previous years, Berlin has again taken the lead in 2025 by a wide margin. With €3.25 billion achieved across all asset classes, the capital is well ahead of Munich with €2.56 billion (-5% compared to 2024). The management trio is completed by Hamburg with almost €1.9 billion (-17% compared to 2024).

"Different developments can be observed in prime yields. While 4.25% is to be applied to offices, as in the previous year, prime yields for premium commercial buildings in prime locations rose by 15 basis points to 3.85% and for logistics properties by 25 basis points to 4.50%," explains Jan Dohrwardt, Managing Director and Berlin Branch Manager of BNP Paribas Real Estate GmbH.

The distribution of the investment volume among the individual asset classes is different from the previous year. With a share of just over 48%, office properties are once again clearly at the top and have reached the level of their long-term average. The sale of the Upper West, brokered by BNPP RE, made a significant contribution to this. The retail properties, which were still leading mainly due to the sale of KaDeWe last year, follow in second place with just under 16% and remain slightly below their usual share. Logistics investments (11%) and hotels (8%) are in second place. Development properties are primarily responsible for the relatively high share of the other category. This shows that project developers continue to be convinced of a long-term positive development of the Berlin investment market.