Chapter 1Executive Summary

This is what we are dealing with in Q1 2024:

Economy: Positive economic impulses not expected until the 2nd half of 2024 at the earliest
Inflation & interest rates: First rate cut expected in June, uncertainty remains.
Germany as a business location: Stress test for Germany as a business location.
ESG: CSRD with a massive impact on demand for space.
Artificial Intelligence: New Horizons and Opportunities for Innovation.

Real estate market summary

Investment market without revival – bottoming out goes into extension for the time being

Economy dampens office market – Subdued start to the year for the office leasing market in the top 7

Heterogeneous start to the year in the industrial & logistics sector – momentum in the rental market weakens noticeably, investment market makes a positive start to the new year

Investment year off to a quiet start for retail properties overall – mixed-use properties with a retail component with high activity in the first quarter

Subdued start to the year in the residential investment market in 2024 – Large portfolio transactions have been a long time coming so far