FRANKFURT INVESTMENT MARKET REMAINS ON STAND-BY
With a transaction volume of just €844 million in the current year, the Frankfurt investment market continues to be on stand-by, even though the third quarter recorded a slight upturn compared with previous quarters as investment volume reached €400 million. The main reason for the low volume, which is 80% below the previous year's level, is the lack of large office transactions due to the fact that the pricing phase has not yet been completed. The adjustment in this market segment between the periods of zero interest rate policy and the current financing environment is particularly significant, which means as long as there is no certainty regarding the price level, sellers are hardly bringing large-volume core properties to the market. For the Frankfurt investment market, the traditionally most important market segment is therefore almost completely absent in the current year. The fact that market participants regard this as a temporary situation is reflected not least in the brisk volume of transaction activity for development properties. Many developers are positioning themselves to participate in the expected upturn in the markets over the next few years.