At a Glance Q3 2024

Investment market Germany

Investmentmarkt Deutschland

INVESTMENT MARKET RECOVERY CONTINUES

  • The recovery on the investment markets that has been evident since the beginning of the year is continuing. With a volume of a good €17.9 billion, the previous year's figure was exceeded by around 15%. The number of registered sales is also around a fifth higher at just under 800. This overall positive development is particularly remarkable considering that the markets continue to feel the headwind from the economy.

  • As in the first half of the year, retail properties lead the asset class rankings. At a good €4.9 billion, they account for more than 27% of commercial investments. This represents an increase of almost 30% compared to the previous year's result. Logistics investments follow just behind in second place with a turnover of around €4.4 billion (24.5% share; +20% compared to Q1-3 2023). Offices, the dominant asset class in recent years, are still only in third place (a good €3.6 billion; share approx. 20%). The office segment in particular is suffering from the economic headwind and the gloomy economic sentiment. Nevertheless, it should be noted that office space take-up on the occupier markets in the first three quarters was slightly higher than in the previous year and that there are signs of a noticeable increase in demand again in the future with higher GDP growth.

  • As expected, the stabilisation phase of yields that began in the first quarter of 2024 has continued. At the end of Q3, average prime net yields for offices in
    A-locations remained unchanged at 4.36%. The prime yield for logistics properties remained at 4.25% and the average for high street retail properties is still 3.76%.

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