NO REVIVAL ON THE OFFICE INVESTMENT MARKET YET
In 2023, the investment volume for office properties in Germany totaled just under € 6 billion. It was therefore the weakest result for this asset class since the financial crisis, with a drop of around 73% compared to 2022. No other asset class recorded such a large year-on-year decline. Nevertheless, office properties still account for a market share of almost 26%. There are several reasons for the very subdued transaction activity in the office sector. Firstly, the necessary price adjustment was more pronounced and therefore more intensive than in any other market segment, and secondly, office space take-up always reacts very quickly and clearly to declining economic trends, meaning that the user markets also tended to send out negative signals. The low number of large-volume single deals and the almost complete absence of portfolio deals are the main reasons for the weak performance.