Transaction levels in the Dusseldorf real estate market reached a new record of EUR 908 mln during the first half of 2007, from EUR 367 mln a year earlier. This figure represents a 147% increase year-on-year, a new research report issued by property consulting company Colliers Trombello Kolbel shows.

Transaction levels in the Dusseldorf real estate market reached a new record of EUR 908 mln during the first half of 2007, from EUR 367 mln a year earlier. This figure represents a 147% increase year-on-year, a new research report issued by property consulting company Colliers Trombello Kolbel shows.

The report suggests that, in contrast to a year earlier, the city investment market is no longer dominated by foreign buyers. Foreign investors were involved in just over half of the purchases by number, but they actually acquired only 35% of the properties by investment volume. Foreign companies also appear more frequently on the seller side, accounting for some 23% of the real estate sales in the German city. New foreign investors from Italy and Spain are expected to enter the market this year, joining the already established UK, US and Australian players.

Yields continued to decline in the German city through the first half of 2007, and a further drop is expected by the end of this year. The top yield registered for office properties went down by 0.1% to 4.65%. Retail properties registered a more significant decrease, with top yields slumping 0.8% to 4.5% and thus dropping for the first time below office property levels. A top yield of 6.2% was realised for logistics assets, which nevertheless represents a 0.3% decrease year-on-year. Office properties accounted for 62% of all transactions in the first half, while hotels accounted for some 12% and retail and logistics each represented 7% of all transactions.