Sell retail in Dresden.

Dresden's retail investment market entered 2026 in an early-recovery phase, distinct from the leasing dynamic in that pricing rather than occupancy drove sentiment. After two years of repricing, prime high-street yields on Prager Strasse firmed modestly to around 4.9 percent as interest-rate expectations eased and core capital cautiously re-engaged, while prime shopping-centre yields on a regional and national proxy basis sat closer to 5.8 percent. Dresden remains a comparatively thin investment market, with full-year 2025 retail volume of roughly 90 million euros (indicative) concentrated in a small number of high-street and grocery-anchored assets. The most liquid product is prime high-street on Prager Strasse, the city's dominant 1A pedestrian pitch, alongside defensive grocery-anchored and retail-park schemes in the suburbs that offer the stable, food-led cash-flows institutional buyers favour. The trophy Altmarkt-Galerie shopping centre is institutional-grade but tightly held and rarely traded, while the adjacent Centrum-Galerie and secondary district centres carry greater repricing and occupier risk. Standalone department-store assets remain difficult to underwrite given the unresolved Galeria covenant question. Demand is underpinned by investor appetite for defensive, food-anchored income, by stabilising prime high-street rents that improve underwriting visibility, and by Dresden's unusually strong heritage-tourism footfall, which supports the resilience of prime cash-flows. The reduction of dine-in VAT to 7 percent from 1 January 2026 further improves the economics of food-and-beverage-led schemes, a segment increasingly central to retail investment theses. Regional malls that repriced sharply over 2022 to 2024 now offer selective value-add entry points for opportunistic capital. Over the next twelve months the principal risks are department-store anchor instability impairing affected asset values, continued structural online pressure on non-prime cash-flows, consumer-spending caution, and the thin liquidity that makes price discovery difficult in a small market. The clearest opportunities lie in acquiring grocery-anchored schemes at defensive yields, selective value-add entry into repriced shopping-centre stock, securing tourism-underpinned prime high-street income, and mixed-use repositioning of weaker assets toward F&B and residential uses. Overall the investment market is bottoming and beginning a cautious recovery led by prime and defensive product.

transaction volume: 90 EUR million retail investment volume Dresden FY2025 (indicative); shopping centre yield: 5.8 % net prime shopping-centre yield (regional/national proxy); prime yield high street: 4.9 % net prime high-street retail yield (Prager Strasse / city-centre).