MODERATE START TO THE NEW YEAR ON THE FRANKFURT INVESTMENT MARKET
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-The Frankfurt investment market once again had a weak start to the year, which is not unusual for the top location in the Rhine-Main region. Even in strong market phases, the market has repeatedly only been able to gain significant momentum and develop more dynamism as the year progressed. In the first quarter of 2025, the commercial investment volume in the Frankfurt market area totalled €162 million. This fell short of the result from the same quarter of the previous year by just under 7%. Not least because many of the transactions initiated in 2024 were successfully completed before the end of the year, there was a lack of product at the beginning of 2025 to achieve a higher quarterly result.
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Market activity was very fragmented in the first three months of the year. The large-volume deals that are so typical of the Frankfurt market - particularly in the office asset class - are still completely absent at the moment, as are transactions above the €50 million mark. On a positive note, the number of deals remained constant compared to the same quarter of the previous year and there was also significantly more movement in the size category between €25 million and €50 million. The DFB portfolio, including the former DFB headquarters in Otto-Fleck-Schneise, also falls into the latter size category.
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Prime yields remain unchanged at the start of 2025. Accordingly, they are quoted at 4.50% for prime office properties, 3.75% for retail high street properties and 4.25% for logistics properties.