WEAK Q1 DESPITE ACCELERATING MARKET MOMENTUM
Hamburg's investment market started the new year with a transaction volume of €306 million. This means that the result remains 33% below the previous year's figure and the long-term average is also still significantly higher. At the same time, however, the volume registered so far only partially mirrors the currently increasing market dynamics.
Furthermore, the current result does not reflect the large-volume transactions currently under negotiation or the pipeline of attractive products that has gradually grown since the beginning of the year. It is particularly significant that in the persistently challenging environment, in which marketing processes take longer due to very careful due diligence processes and, in particular, changing financing conditions, only a few major deals were successfully brought over the finish line directly at the beginning of the year. However, they are still in concrete negotiations. Investor interest remains high in Hamburg, which is known for its stable occupier markets.
After retail buildings in prime high-street locations and logistics properties recorded yield increases of 10 and 25 basis points respectively in the past twelve months and prime office yields remained constant, the yields of all three asset classes are stable compared to the previous quarter. Thus, the net prime yield for logistics properties is 4.50%, for office properties 4.25% and for retail high street buildings 3.85%.