Commercial real estate: subdued take-up in the first half of the year
By the middle of 2022, office space take-up was only around 45,000 square meters (following take-up of 135,000 square meters in 2021). In the logistics and industrial real estate segment, take-up of around 150,000 square meters of warehouse space was recorded in the middle of the year (after total take-up of 425,000 square meters in 2021). The environment characterized by further crises and, above all, the uncertain outlook are making players on both the supply and demand side more cautious in their investment decisions at the moment. As a result, decisions on lettings in the office sector are being delayed despite the existing demand, resulting in a comparatively subdued start in the first half of 2022.
Strong interest in the prime locations between Aegidentorplatz and the main railway station is reflected in the current trend in prime rents: It rose significantly in the city center area to EUR 18.50 per square meter by the middle of the year - an increase of 50 cents. On the arterial roads, however, the prime value fell to EUR 15.50 per square meter in the first half of the year, a drop of 50 cents. For logistics properties, there are signs of an increase in prime rents to EUR 5.50 per square meter and average rents to EUR 4.60 per square meter (both up 20 cents). These were in particularly high demand last year.
The experts agree that these initial mid-year results only allow limited forecasts to be made for the rest of the year and the other submarkets. In the retail and hotel property sector in particular, the situation continues to be negatively impacted by uncertainties surrounding the coronavirus pandemic, although initial signs of recovery were visible at the beginning of the year. The residential real estate market is facing tougher challenges, particularly in connection with inflation, rising interest rates and sharp increases in energy costs.
Head of Economic Affairs Ulf-Birger Franz knows that the local real estate companies are nevertheless optimistic about the second half of the year: "In the coming years, the areas of technology, research and development in particular will become a strong anchor. To ensure that the Hannover Region remains an internationally sought-after location for development and investment, we must continue to develop these strengths. We know what we can do in the Hannover Region and must focus on this." Anja Ritschel, Head of Economic and Environmental Affairs in the state capital of Hannover, is also optimistic about the current data: "Despite all the uncertainties: Hannover as a location will once again show what it is made of. The city and region will benefit from long-term planning and developments and ultimately continue to clearly demonstrate the location's much-vaunted resilience."
Together with 27 partner companies from the real estate industry, the Hannover Region compiles data, trends and market sentiment on all submarkets in the region every year and prepares these together with the consulting firm bulwiengesa AG. The current plan is to publish the real estate market report on September 28, 2022 and present it at the international commercial real estate trade fair EXPOREAL in Munich from October 4 to 6, 2022. The market data available by then will also be used to provide assessments of the current situation and forecasts in the office, logistics, residential, retail and hotel submarkets.
The 2022 real estate market report will then be available for download atwww.wirtschaftsfoerderung-hannover.de.