Munich real estate investment market
According to Savills, around 980 million euros were turned over in the Munich real estate investment market in the 1st half of 2025. Compared to the same period last year, this corresponds to a decline of 27%. Compared to the 10-year average, sales were even 54% lower. In the last twelve months, Savills has registered about 40 transactions, an increase of 34% compared to the same period last year. Prime yields for offices stood at 4.1% at the end of June, 10 basis points below the previous quarter and the previous year's figure. The prime yield for commercial buildings stood at 3.9% at the end of June, unchanged from the previous quarter and the previous year's figure.
Philipp Traumann, Associate Director Investment at Savills in Munich, comments on the market as follows: "Numerous sales processes are currently underway and several of these transactions are about to be reviewed or are in exclusive review phases. The largest bid volume is accounted for by the insolvent Signa Group. Other sellers are mainly institutional investors from Germany, who are mainly parting with office properties. On the buyer side, there is still mostly private capital, which is using the current market phase for countercyclical purchases. The uncertainty that has already characterized the first half of the year is likely to persist for the rest of the year. Nevertheless, the higher volume of offers and the more realistic price expectations of the sellers speak for a more transaction-rich second half of the year."
With a transaction volume of EUR 590 million, office properties have contributed the most to investment turnover in the last twelve months, followed by retail properties (approx. EUR 560 million) and residential properties* (approx. EUR 460 million).
Against the backdrop of increasing willingness to sell and more realistic price expectations of many owners as well as the growing number of active investors, Savills expects a gradual increase in transaction activity in the future.
