CIRCUMSTANCES REMAIN CHALLENGING
Changing circumstances on the real estate markets, which had already led to significantly lower investment volumes by the end of last year, remain a market-dominating factor in 2023. Interest rate hikes, which have had a dampening effect on the financing environment, are the main reason for this. Due to the exceptionally low yields in previous years, the pricing phase in the office segment requires more adjustment than in other asset classes, and therefore transaction volumes remain at a very low level. Large-volume core properties in A-locations, which have contributed significantly to the good results in recent years, have been affected the most by the still ongoing price finding phase. Consequently, first quarter investment volume totalled just under €1.27 billion. With a share of only 25%, office investments have therefore lost their leading position to the retail sector (30%). On top of this, the prevailing uncertainty about further economic development and the expected performance of the occupier markets are causing some caution on the part of investors. Aside from that, no portfolio transaction has been concluded so far.