WAIT-AND-SEE ATTITUDE ON THE INVESTMENT MARKET
The result on the Frankfurt investment market is also sobering at the halfway point of the year. After a very weak start to the year with €96 million in the first quarter of 2023, an interim result of €444 million can now be reported, but the result is around 81% below the 10-year average and thus at the level of 2010. The fact that the very strong quarter of the previous year was missed by almost 87% is hardly surprising in view of the continuing challenging interest rate and economic environment. The Frankfurt investment market is also feeling the effects of the fact that the pricing phase is not over after more than a year. The gap in price expectations between sellers and buyers has still not closed in early summer 2023. Added to this is the lack of strong and positive signals from the office letting market, which at the halfway point of the year has not yet been able to report any contracts beyond 10,000 sqm and is thus still absent as a support for market revival for the time being. This combination of factors is primarily responsible for the currently still low market momentum.