OFFICE INVESTMENT MARKETS: STRONG START TO THE YEAR
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In the first quarter of 2025, office properties regained their traditional leading role, which they had lost to logistics properties in the last two years. With an investment turnover of around €1.75 billion, they were able to double their previous year's figure. With a share of almost 30% of the overall result, they have been the asset class with the highest turnover to date. The sale of the Upper West in Berlin contributed to the good result with well over €400 million. But even without this benchmark transaction, offices would have secured first place.
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This is due to an increase in the number of sales as well as a noticeable rise in the average purchase price from just over €17 million (Q1 2024) to currently around €30 million per sale. A number of transactions were registered in the mid-market segment between €25 million and €100 million in particular. This shows that investors are increasingly regaining confidence in the medium and long-term development of the German office markets.
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The situation with regard to yield trends has currently changed considerably. This is due to higher financing costs in recent weeks and higher yields on German government bonds. As a result, the net prime yields at the beginning of the year are unchanged. For offices, they average 4.36% for A-locations. Munich remains the most expensive location at 4.20 %. It is followed by Berlin and Hamburg with 4.25%. Cologne and Stuttgart are quoted at 4.40% and Frankfurt and Düsseldorf at 4.50%.