Office real estate market in Frankfurt collapses: investments fall to a twelve-year low. Experts see high interest rates and home office as reasons.

Office real estate market in Frankfurt collapses: investments fall to a twelve-year low. Experts see high interest rates and home office as reasons.

According to a report by www.zeit.de, the office property market in Frankfurt am Main collapsed sharply in 2023. Transaction volumes fell by almost 90 percent compared to the previous year, which is an alarming signal for the real estate industry.

The reluctance of office investors remains high and there is a particular lack of large real estate deals. This crisis in Frankfurt is also reflected on the nationwide investment market, where the overall transaction volume for real estate has fallen to its lowest level since 2011.

According to Suat Kurt, head of the JLL branch in Frankfurt, many investors are waiting for cheaper entry opportunities and there is an adjustment of prices. The increased interest rates, the trend towards home offices and stricter energy requirements also have an impact on the office market.

The office real estate market in Frankfurt and the general real estate investment market in Germany are experiencing a sharp decline, which is due to increased interest rates, the trend towards home offices and stricter energy regulations. This decline has a significant impact on investors and the real estate industry in general.