MARKET RECOVERY FROM Q2 CONTINUES SOMEWHAT WEAKER IN Q3
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An investment volume of €1.26 billion was registered on the Frankfurt investment market for commercial properties in the first nine months of 2024. This significantly exceeded the previous year's result by around 50%. Nevertheless, the investment volume remains significantly below its long-term average (€3.76 billion). After a very weak first quarter (€174 million), the Frankfurt investment market picked up noticeably in the second quarter (€679 million), although the momentum did not fully carry over into the third quarter (€413 million).
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This puts the financial metropolis well behind Berlin (€2.7 billion) and Munich (€2.1 billion) in third place among the A-locations, but well ahead of Hamburg (€1 billion) and Cologne (€924 million). The office asset class, which is so important for Frankfurt, accounted for around €711 million, meaning that Frankfurt remains the highest-volume office investment market in Germany this year. Given the lack of office tower and portfolio transactions, this is a positive sign of recovery. The very low office investment volume of the previous year has thus been left far behind.
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As expected, prime yields remain constant, meaning that no change has been registered since the beginning of the year. A net prime yield of 4.50% is assumed for office properties, while the net prime yield in the logistics segment is 25 basis points lower at 4.25%. Retail high street properties in prime locations are currently yielding 3.75%.