DESPITE NOTICEABLE RECOVERY: INVESTMENT MARKET WITH SUBDUED ACTIVITY
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An investment volume of just under €180 million was recorded for the Stuttgart investment market in the first half of 2024. This was around 57% below the previous year's result and the 10-year average of around €650 million also remains a distant prospect (-73%).
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Despite the subdued half-year result, there are increasing signs of a gradual recovery and an acceleration of market activity on the Stuttgart investment market. After an extremely weak start to the year with an investment volume of just €61 million in the first quarter, around €118 million was successfully placed on the market in the second quarter.
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In a persistently challenging market environment, the fact that the transaction activity is neither dominated by small deals with an investment volume of up to €10 million nor by a single major transaction is encouraging. Instead, three contracts in the range between €20 million and €60 million were successfully concluded in the second quarter, which indicates that the market is slowly gaining momentum again across the board.
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Prime net yields have stabilized at the level reached at the end of 2023. They remain unchanged at 4.40% for office properties. Mixed-use commercial properties in prime locations are expected to yield 3.85%, while prime logistics properties in the Stuttgart market area continue to achieve 4.25%.