The investment market in Leipzig recorded a transaction volume of approximately 341 million EUR after the first three quarters of 2026. This result represents the highest in the past three years and triples the weak outcome of the previous year. Despite this positive development, the current value is still around 28 per cent below the long-term average.
The overall solid performance is primarily due to a strong start to the year. In particular, the sale of the Höfe am Brühl shopping centre for a triple-digit million euro sum contributed significantly to the transaction volume already reaching 209 million EUR in the first quarter. Subsequently, the momentum of transactions and the volume decreased in the following quarters; in quarters two and three, only around 65 million EUR were recorded respectively.
Analysis by BNP Paribas Real Estate also shows that the number of registered transactions, with a total of only 16 properties, remains at a low level. Stefan Sachse, Managing Director and Leipzig Branch Manager at BNP Paribas Real Estate GmbH, pointed out that increased capital market interest rates led to specific adjustments in prime net yields. Yields for prime high street retail properties and logistics properties rose by 10 basis points each in the third quarter, reaching 5.10 per cent and 4.90 per cent respectively. For top office properties, an increase of 30 basis points to 5.60 per cent already occurred in the second quarter, although this segment currently shows no further movement.
Distribution and International Participation
The distribution of investment volume across individual asset classes in the first three quarters was significantly shaped by the retail segment, which accounted for over half (55 per cent) of the total volume. This is mainly due to the transaction of Höfe am Brühl. Additionally, the sale of another large high street retail property in the city centre in the double-digit millions was registered in the retail sector. Other significant shares were attributed to hotel properties at 15 per cent and the "Other" category at 14 per cent, which primarily included land and healthcare properties. Office properties have so far played a subordinate role in the Leipzig market; no deals exceeding 10 million EUR have been recorded in this asset class to date.
A striking feature is the high proportion of foreign investors, who accounted for approximately 74 per cent of the total transaction volume, corresponding to over 250 million EUR in absolute terms. This result is above average in a long-term comparison and is also due to the large-volume shopping centre transaction involving the foreign buyer Investika. Furthermore, the increased share of portfolio transactions compared to the previous year is noteworthy, with about a quarter of the current volume attributed to Leipzig properties that were part of nationwide package sales in the logistics, healthcare, and hotel segments.
Outlook and Challenges
Despite the solid annual result, the situation in the Leipzig investment market remains challenging. The low number of transactions indicates that a sustained and broad revitalisation of market activity is still pending. Increased capital market interest rates continue to weigh on financing conditions. However, positive impulses could come from the recently corrected growth forecasts for the German economy and improved sentiment indicators, such as the brightening ifo business climate. Such a development would also benefit the subdued user markets in the long term and strengthen investor confidence in future earnings prospects.
Hannes Baderschneider, also Leipzig Branch Manager at BNP Paribas Real Estate GmbH, predicts a continued moderate transaction dynamic for the final quarter. Individual larger deals could still noticeably increase the investment volume, but a broad market recovery is unlikely in the short term. He expects an annual result that should approach the 500 million EUR mark. Furthermore, given the capital market environment, further slight yield increases in specific market segments cannot be ruled out.
