CITY SHORTY – DUESSELDORF.

KEYFACTS.

Duesseldorf at a glance

Duesseldorf: Development of monetary turnover.

A turnover of about EUR 5.8 billion (asset deals) was generated in 2021. To provide context: While this might be 12 % less than in the record year 2019, the result is still 31 % higher than the ten-year average. The largest increase in turnover was recorded for undeveloped land. The market volume of around EUR 400 million contracted in this sector represents a rapid growth of around 190 % compared to the previous year.

Parallel to turnover development, we also saw the number of purchases rise in 2021. While 4,396 purchases had been registered in 2020, this number rose by 4.8 % in a year-on-year comparison to 4,609 deeds.

The space turnover of approx. 277 ha was about 91 % higher than in the previous year (2020: approx. 145 ha). As a result, the most recent market volume is

Regional office market Duesseldorf: Development of office take-up, supply reserve and prime rents.

According to analyses of Aengevelt Research, the office space market in and around Düsseldorf (including the surrounding areas and the cities of Erkrath, Hilden, Ratingen, Neuss) generated an office space take-up (including owner- occupiers) of about 325,000 sqm in the reporting year 2021. It was thus about 40,000 sqm or 14 % higher than in the previous year (2020: 285,000 sqm), but around 16 % or 62,000 sqm lower than the long-term take-up average (Ø 2011 - 2020: 387,000 sqm per year).

Both the prime rents and average rents have shifted sideways. The weighted prime rent had reached around EUR 28.50/m² by the end of 2019. This level has been maintained since then.

In the course of 2021, the vacancy reduction of the past years came to an end in the Düsseldorf region. The total supply reserve available on the short term rose by 70,000 sqm when compared to the previous year and amounted to about 670,000 sqm at the end of 2021. Vacancy rates for the entire office space market in the region (including surrounding areas) therefore rose from 6.4 % at the end of 2020 to currently 7.2 % in 2021.

Duesseldorf: Turnover development of the market for residential property.

The low interest rate level still stimulated increased home ownership during 2021, especially in higher-income circles of the population. The performance on the property market for private homes (detached single-family homes, semi-detached houses and terraced houses) and freehold flats has been strong since 2009. The EUR 1 billion turnover mark was exceeded for the eleventh time in a row in 2021. The transaction volume of EUR 1.8 billion constitutes an increase by about EUR 149 million or 8.9 % when compared to the previous year (2020: EUR 1.7 billion).

The number of building permits fell again in 2021. While permits for the construction of a total of 3,212 residential units (new construction and rededication and refurbishment, excluding non-residential buildings) had been granted in 2020, the number of building permits fell to about 2,301 residential units in the reporting year 2021 and fell about 17,0 % short of the average of the most recent decade (Ø 2011 - 2020: 2,772).

The asking rent in Düsseldorf continued to rise sharply in the course of 2021 (+ 6.1 % year-on year) with a current average of EUR 14.00/sqm per month for new flats (upmarket fittings, 60-80 sqm living space). Within the past five years, rents in this segment rose by about 25 % (2021: EUR 14.00/sqm, 2017: EUR 11.17/sqm). Due to the low level of new construction and the long-term positive population trend, average rents are expected to rise further.

CONTACT.

Mark Aengevelt

Managing Partner