At a Glance Q1 2023

Investment market Frankfurt

Investmentmarkt Frankfurt


Due to its structure, the Frankfurt investment market was expected to struggle with the shift in financing conditions and the resulting uncertainties and challenges. However, it is somewhat astonishing that transaction activity almost came to a complete halt in the first quarter. The traditionally strong focus on office properties on the one hand, and on large-volume core properties on the other, caused many large transactions that were already on the market last year to be halted for the time being after the sharp interest rate hikes. This effect was significantly stronger in the Main metropolis than in any other city, causing a sudden and considerable reduction in available assets. At the same time, the occupier markets started the year slightly weaker due to the still fragile economic situation. In addition, the further elaboration of ESG related aspects is causing some uncertainty among investors. At the same time, large-volume core deals in particular are affected significantly by the still ongoing pricing phase. As a result, investment volume in the first quarter was only € 96 million, marking the lowest figure ever recorded based entirely on a few single deals. Proportionately included portfolio transactions were not recorded. Among the major German locations, only Cologne recorded an even lower volume.

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