Chapter 1Executive Summary

This is what we are dealing with in Q2 2024:

Economy: No recovery expected in the short term, outlook for 2025 cautiously positive
Inflation & interest rates: First interest rate cut in June, further path with high uncertainty
Germany as a business location: stress test for the 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 – market continues to tread water

Economy dampens office market – Only slight recovery of the office leasing market in the top 7

Heterogeneous start to the year in the industrial & logistics sector – Industrial and logistics leasing market with subdued demand, investment market remains dynamic

Investment year off to a quiet start for retail properties overall – mixed-use uses with retail components and special situations characterise the market

Residential investment market with subdued first half of 2024 – Large portfolio transactions are still a long way off