VOLUME WITH POTENTIAL FOR GROWTH, MORE MOMENTUM FROM QUARTER TO QUARTER
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Around €420 million was invested in the Stuttgart market for commercial property investments by the end of the third quarter of 2024. This is around a quarter below the previous year's result and almost 60% below the long-term average. This is the lowest result since 2011.
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Even if the figures still look very disappointing at the moment, there are still positive things to report. For example, a market upswing can certainly be recognised over the course of the year, which is currently reflected in a doubling of the investment volume every three months. While only around €60 million was placed in the first quarter, this figure rose to almost €120 million in the following quarter. A further €240 million has been added in the past three months.
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The fact that the gradual increase in market momentum is largely due to the fact that office transactions have recently been below average is a further indication of the brightening market sentiment.
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In line with this, a look at the development of yields shows that the pricing process is likely to have reached its peak. Apart from exceptional off-market transactions such as Königstrasse 35, net prime yields across all major asset classes have largely moved sideways since the beginning of the year. Accordingly, yields for office properties remained unchanged at 4.40% at the end of the third quarter. Logistics properties are just below this at 4.25%. Meanwhile, retail high street properties in prime locations are quoted at 3.85%.