THE RECOVERY OF INVESTMENT MARKETS CONTINUES TO GAIN MOMENTUM
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The slight upturn in the investment markets that was already evident at the beginning of the year accelerated further in the second quarter. As a result, total commercial property investment volume amounted to €12.2 billion in the first half of 2024. Compared to the previous year, this corresponds to an increase of around one third. In the portfolio segment, the transaction volume more than doubled to €2.7 billion. Even though revenue is still moderate in the long term comparison (-46 % compared to the 10-year average), a clear upward trend can nevertheless be recognised.
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The structure of investment volume reflects that retail properties lead the field. With an investment volume of over €3.6 billion (+92% compared to 2023), they account for almost 30% of total revenue. Logistics properties are responsible for over 23% of the overall result with a good €2.8 billion (+84%). Meanwhile, office properties only accounted for €2.2 billion (-31%), which is largely due to the uncertainty regarding the future development of the office occupier markets and the cautious attitude of many investors regarding the final price trend, particularly in the higher priced and large volume market segment.
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As expected, the stabilisation phase of yields that began in the first quarter of 2024 has solidified. As a result, no changes were observed in prime yields across all asset classes. The net prime yields for offices remain at an average of 4.36% in A locations. In the logistics market, the prime yield remained at 4.25% and the prime yield for mixed-used highstreet assets in A locations with focus on retail is unchanged at 3.76%.