Figures
Major Provincials Office Investment Figures H2 2024
Market activity outside the top 7 cities remained weak in 2024
04 February 2025 10 Minute Read
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- In 2024, the office investment market in B locations and regional centers recorded a transaction volume of €1.3bn – around a quarter less than in 2023
- In contrast to the market as a whole, which saw a year-end rally, albeit a moderate one, the fourth quarter was the weakest of the year in the B locations and regional centers. At just €115.5m, 71% less was invested than in the third quarter of 2024 and 74% less than in the same quarter of the previous year
- The repricing in the core segment of office properties launched after 2021 has now been completed - and there are initial signs of moderate yield compression in Berlin and Munich; however, a stable sideways movement can be expected in the B locations and regional centers
- Outlook: even if the office real estate investment market continues to face challenges, a more positive sentiment is emerging for 2025; after the top locations initially benefit from this, transaction volumes in B cities are also expected to pick up again as the year progresses