WEAK START TO THE YEAR: BUT ABOVE PREVIOUS YEAR'S QUARTERLY RESULT
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Stuttgart's investment market is off to a similarly weak start to the new year 2025 as the other top markets, with commercial properties totalling €71 million changing hands in the first quarter of 2025. Accordingly, the market is operating at a significantly below-average level. Nevertheless, the result improved by 16% compared to the same quarter of the previous year.
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The overall improvement in market sentiment and the renewed interest and confidence of investors has not yet been reflected in a pick-up in investment volume. The weakening economic engine, uncertainty about the future political and economic course on both sides of the Atlantic and the fact that confidence in the occupier markets has not yet fully returned are causing many investors to remain cautious, particularly with regard to strategic, large-volume purchases. Larger deals involving office properties in particular have not yet been registered on the Stuttgart market to any significant extent. The largest transaction is the sale of the office and commercial building at Calwer Strasse 33-35/ Kronprinzenstrasse 28-30.
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As expected, prime yields remain unchanged compared to the fourth quarter of 2024. Prime office properties are currently expected to yield 4.40%, while logistics properties yield 4.25% and retail high street properties 3.85%.