INCREASE IN VOLUME AND HIGHEST OFFICE INVESTMENT VOLUME AMONG THE TOP MARKETS
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Against the backdrop of continuously improving conditions, the Frankfurt investment market can report a satisfactory overall balance at the end of the year. Even if, as expected, the long-term average (a good €6 billion) could not be reached again with a current transaction volume of just over €1.6 billion (-73%), the significant increase in turnover compared to 2023 (+36%) can be seen as an initial indication of returning investor confidence in a sustainable stabilization of the market environment.
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Another factor that is likely to have a positive impact on market sentiment in the Main metropolis is the highest office investment volume compared to other locations (around €1.0 billion). None of the other top locations achieved one billion euros from office transactions alone, which is all the more pleasing given the extraordinarily high importance of the office sector for the Frankfurt market. In this context, an office transaction with a signal effect in the three-digit million euro range crossed the finish line at the end of the year. In terms of the overall commercial transaction volume, Frankfurt ranks fourth behind the investment locations of Berlin (a good €3.5 billion), Munich (just under €2.7 billion) and Hamburg (almost €2.3 billion).
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In view of the price adjustment processes currently being finalized and the increasing planning certainty of investors with regard to financing costs, net prime yields have stabilized: Premium high street properties in prime locations (3.75%), top logistics assets (4.25%) and prime office properties (4.50%) will thus each maintain their values at the end of 2023.