Retail market

193 €/sqm NF

Top rent

4,10% - 7,00%

Prime yield


Centrality index

Market potential

The first half-year of 2022 presents a different picture for retail in Germany. While the sales development in the first quarter of 2022 was still tied to the hope of a strong recovery from the bottoming-out due to the COVID-19 crisis that some industries experienced, in particular the fashion and apparel segments, this hope was disappointed all of a sudden in the second quarter. Hard lockdown measures in China with the related discontinuation of supply chains, the outbreak of the Ukraine war and the resulting explosion of energy prices, as well as a drastic inflation rate contributed to a clearly noticeable dampening of sentiment, which ultimately also arrived in all retail segments. Peak rents in A-plus locations in the Ruhr metropolitan area once more eased slightly in this area of conflict in some sub-segments, e.g. in Dortmund and Essen, while they remained stable in A-rated cities in 2022. This trend of lower rents
was driven by online competition already before the COVID-19 crisis. After lockdowns due to the pandemic, the high inflation and the geopolitical and economic uncertainties triggered by the Ukraine war are further factors in addition, which could result in lower consumer spending for irregular needs (apparel, electronics, furniture). At this time, operating forms of discounters are gaining steam again. Higher priced and higher valued products are increasingly replaced by consumers for lower priced products, which gives discounters a boost – in spite of the price increases that can also be seen there – while supermarkets or full-range retailers in the food segment report lower sales. Price-conscious consumption patterns taking hold most recently therefore take the lead role and frequently dominate purchase decisions.