Rental Yields Across Five Major German Cities: A Snapshot of Q1 2025
running down the numbers in Berlin, Düsseldorf, Frankfurt, Hamburg, and Munich
fleeting improvements in Frankfurt
Stagnation in Office Buildings Due to the Emerging Crisis
The latest figures from the Victor Prime Office and real estate agency JLL show a slight uptick in rental yields for prime locations in first-rate German cities in Q1 2025. Interestingly, Frankfurt was the only city showing a fluctuation, with rental yields inching up by 0.4% from the end of Q4 2024, settling at 167.9 points. This marks Frankfurt's third consecutive rise since the beginning of the year.
prime yields, city by city
If we delve a tad deeper into the numbers, here's a quick rundown of the rental yields in each city:
- Berlín: Approximately 3.5%
- Düsseldorf: Hovering around 3.65%
- Frankfurt am Main: About 3.4%
- Hamburgo: Nearly 3.5%
- Múnich: Roughly 3.7%
Compared to the previous year, these rental yields reveal a stability or subtle shifts in the mid to high 3% range. This steady trend aligns with a promising start in the investment market for 2025, weathering the storm of economic and political turmoil and signaling robust investor interest in these prime real estate locations.
what's cooking in the market?
The steady rental yields for the prime locations in these cities are buoyed by increased transaction volume and revitalized optimism in office segments, hinting at investors' confidence in the prime markets. Not only are these prime locations continuing to lure investors, but they're also showcasing a resilience that defies the turbulent times.
In essence, Q1 2025 rental yields for prime locations in Berlín, Düsseldorf, Frankfurt, Hamburgo, and Múnich have remained relatively stable, hinting at a steady investment environment for German prime real estate.
The fluctuating trends in rental yields within the prime real estate market in the first quarter of 2025 have caught the eye of investors. Frankfurt, amidst five major German cities, experienced a 0.4% increase in rental yields, suggesting a growing interest in investing in the finance and real-estate sectors of this city. Despite slight improvements, the rental yields of Berlin, Düsseldorf, Hamburg, and Munich have remained stable around the mid to high 3% range, providing a steady environment for investors looking forward to the investment market in the industry.
