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Von Handels-Immobilien Schubert

EXPO REAL 2022 – Fazit

Retail real estate prices are falling a little – but probably not significantly.

For the first time in a long time, buyers in the commercial real estate market are experiencing slightly falling prices and longer marketing times. However, the objects are still very popular. At this year's Expo Real, the really big grocers once again campaigned for project partners for new locations. 

For years, real estate prices for commercial objects knew only one direction: they rose. Now the soaring seems to have stopped. The prices are corrected slightly downwards, around 5 – 10%. However, the segment is still in high demand and remains attractive to investors. Up to 25 times the net annual cold rent was achieved in the peak phase, i.e. an initial yield of around 4%. Investments remained attractive because, for example, interest on risk-free bonds was even worse. However, the slightly lower prices mean that some projects are being abandoned because the construction costs can hardly be calculated, and the supply shortage remains. The dealers themselves are pushing ahead with their own projects, but here too the phases are being delayed and are not increasing the purchasable range. 

food markets and retail parks remain attractive.

Grocery stores and retail parks are still particularly in demand. This is also due to the index rents, which offer the owner a certain amount of inflation compensation, which is still a safe haven for many investors. This is counteracted by the rising interest rates, so that the banks are also demanding higher equity shares, and so some investors hesitate, they wait and hope for better, i.e. clearer times.