FRANKFURT (dpa-AFX) - In the real estate crisis, major investors are avoiding the purchase of office space. Investments in Frankfurt slumped to 347 million euros in 2023 - almost 90 percent less than in the previous year, when offices accounted for a good 3 billion euros. This was announced by real estate specialist Jones Lang LaSalle (JLL) on Thursday. The decline was therefore greater than the national average. According to JLL, a transaction volume of €5.18 billion was recorded for offices across Germany in 2023, a drop of 76% compared to the previous year.

"Office investors are still very cautious," said Suat Kurt, Branch Manager of JLL Frankfurt. Although there have been initial price adjustments, many investors are waiting for more favorable entry opportunities. According to JLL, there is a lack of large deals. The office share of total take-up in Frankfurt has fallen to 23 percent - office deals normally account for more than half of the investment market in the banking city. By contrast, office lettings fared better, with a decline of just over six percent in Frankfurt in 2023 according to earlier figures.

In general, the Frankfurt commercial real estate market was in the doldrums, the report continued. Only 48 transactions were recorded in 2023, less than half as many as in the previous year. The total investment volume amounted to 1.5 billion euros - down 71 percent on the previous year.

The real estate markets are in crisis, as higher interest rates are making financing more expensive. The trend towards working from home and stricter energy regulations are also making themselves felt on the office markets. Retail properties are suffering from the trend towards online retail and consumer restraint in inflation. Commercial real estate has been hit much harder than apartments by the fall in prices./als/DP/zb