“The fact that so far transactions with an average volume of € 400 million were made in every month, clearly reflects the strong market dynamics and the persistent run on Munich’s market.” states Tobias Seiler, Research Analyst at Colliers International Munich. Once again the most sought-after real estate was office properties accounting for 60% of the turnover, followed by mixed-used properties with a share of 13%. It can be noted that the diversification of products has intensified and other asset classes could boost their market share. “€ 364 million have been invested in hotels, which represents six times the previous year’s amount was invested in this asset class and thus this can be considered to be the rising star on the investment market in Munich.” says Tobias Seiler.

Although centrally located products are becoming rare, investors once again focused on (core) locations within Mittlerer Ring. 52% of the total transaction volume was generated for properties situated within Mittlerer Ring, comprising this year’s largest transaction up to now on the Munich market: “Theresie”. Additional large-scale transactions in central locations were the Karstadt building at Bahnhofsplatz at the beginning of this year and Lenbachgärten in Munich’s Maxvorstadt district, which is also close to the main train station and was purchased by the Norwegian sovereign wealth fund in the last quarter of 2013.

The locations between Mittlerer Ring and the city limits accounted for 31% of the total volume. The remaining 18% were investments in properties located in Munich’s suburbs with a clear focus on the northern surrounding area. Among the largest transactions were the buyback of an Allianz building by Allianz and the sale of the completely reconstructed “Concor” in Aschheim to a REIT from Singapore.

As already in previous years international investors played a big role in generating large volumes. “One third of the transaction volume was generated by foreign investors, risk-averse pension funds as well as adventurous opportunistic investors, so that international investors traded real estate of every type of risk group.” says Tobias Seiler.

The expectations we had regarding the strong interest in investing in the Munich market were fulfilled during the course of this year” Béla Tarcsay, Managing Director at Colliers International Munich sums up. “The very good talks at EXPO Real 2014 and the currently ongoing sales processes indicate that also this year’s 4th quarter will be prosperous and that we will meet our forecast of € 5 billion by the end of the year.” he adds.