Commercial real estate market 2023: transaction volume collapsed and prices fell - experts expect recovery.

Commercial real estate market 2023: transaction volume collapsed and prices fell - experts expect recovery.

According to a report by amp2.wiwo.de, the real estate market for commercial real estate will decline sharply in 2023. Transaction volume has fallen to its lowest level since 2010 due to various factors. The office property sector in particular has been significantly affected, as many investors are cautious due to the trend towards home offices and increased energy requirements. However, commercial space rents continue to rise, which could ease concerns about falling property values. In the coming years, an increasing transaction volume and a stabilization of prices are expected.

As an expert in the real estate market, I can confirm that the effects on the commercial real estate market in Germany are clearly noticeable. With a 60 percent drop in transaction volume compared to last year, the situation is worrying. The office property sector is particularly affected, where investments have fallen by 77 percent. This is due to the trend towards home offices and the increased energy requirements.

Despite the decline in transaction volume, rents for office space continue to rise, especially for newly leased space. This could ease concerns about falling property values ​​and help prices stabilize in the coming years.

The experts at Savills and JLL also expect an increasing transaction volume in the coming years. Property prices are expected to fall for the time being to stimulate low demand. This could stabilize over the course of the year unless there is a large amount of fire selling, which would lead to an increase in transaction volume.