Hannover RegionRegion, city and real estate industry take stock for 2022 in the two most important regional commercial real estate submarkets: office and retail...
Region, city and real estate industry take stock for 2022 in the two most important regional commercial real estate submarkets, office and logistics
In the third year marked by the coronavirus pandemic, the regional real estate market made a comeback in the office and logistics submarkets. This is the result of the assessment of the region and the state capital of Hanover for the past year 2022 together with the most important and market-shaping players in the regional real estate industry.
Initially starting 2022 more cautiously than expected, the office and logistics submarkets achieved very good sales in the second half of 2022. Nevertheless, the joy and relief is clouded. The economic and macropolitical challenges in the upcoming year 2023 remain significant: inflation, rising interest rates, huge increases in energy costs, fragile supply chains and the effects of the war in Ukraine.
The joint conclusion is therefore: the crisis-ridden environment has significantly slowed down the investment decisions of players on both the supply and demand side in 2022, especially in the first half of the year. However, sales then picked up more dynamically than expected in the second half of the year, presumably driven by catch-up effects from the weak previous years and the expectation of even higher prices in the coming months. The office market in particular experienced a comeback as a result and, with around 165,000 square meters of space taken up, is back on track with the strong years of 2018 and 2019. And the market for logistics and production properties set another record in 2022 with a good 420,000 square meters of take-up.
Ulf-Birger Franz, Head of Economic Affairs for the Hannover Region:
"The Hannover economic region is once again responding robustly in a crisis situation and shows that we are very well positioned here in the Hannover Region. We are in a competitive position and have good reasons to look to the future with optimism despite all the challenges. To this end, it is important that we remain in close contact with our partners. Because there are many challenges that are best tackled together."
Anja Ritschel, Head of Economic and Environmental Affairs of the City of Hanover:
"The effects of the pandemic are increasingly fading into the background, and in 2022 the commercial real estate market will also benefit from catch-up effects from the weaker previous years. Companies and investors believe in the location. In 2023, it will remain exciting to see how the submarkets will adapt to the challenging situation overall."
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