Peak rent development follows national trend
212 euro/m² FS
Top rent level 2018
26.9 bn euros
The demand volume (all key categories of goods) in the Ruhr Metropolis totalled some 26.9 bn euros in 2018, representing a fall of 0.4 % or 100 m euros compared to the previous year.
Basic commodities accounted for 53.7 % or 14.4 bn euros. Within the aperiodical category of goods Fashion dominated with 12.3 % or 3.3 bn euros, as was the case the previous year, followed by Construction/Garden/Leisure with 10.3 % or 2.78 bn euros and Furnishings and fixtures at 9.2 % or 2.47 bn euros.
In the regional distribution of demand volume, as expected, the district of Recklinghausen, which has the most inhabitants, was at the top (3.27 bn euros / 12.2 % share). Places two and three went to Essen (3.2 bn euros / 11.8 %) and Dortmund (3.0 bn euros / 11.2 %) The centrality rating of the Ruhr Metropolis stands at 104.8 and indicates slight inflows of purchasing power from the surrounding area.
Top rent level
The average top rent level for 1a retail locations stood at 212 euro/m² FS within 2018, slightly below the level of the previous year. With this, the mean value of the A locations (unweighted) of 289 euro/m² FS still fails to be met, although the average of the B locations of 134 euro/m FS is significantly exceeded.
Peak rents are traditionally achieved in the top Dortmund location of Westenhellweg, which is regularly found amongst the ten most-visited shopping streets in Germany.
A stable rent trend is anticipated for 2019.
Mean average rent
The mean average rent for all sub-markets of the Ruhr Metropolis fell moderately compared to the previous year, standing at approximately 36.00 euro/m² FS at the end of 2018 (previous year 37.10 euro/m² FS). The range extends from 18.00 euro/m² FS in Oberhausen and Witten to 115 euro/m² in the top location Dortmund.read more
Net initial returns
The net initial returns for retail properties in central locations fell again compared to the previous year, by 20 basis points, to 3.9 %, constituting a new low.
As with retail rents, Dortmund occupies first place with regard to purchase prices. The net initial returns generally reflect the different rent levels of the Ruhr Metropolis. In Witten and Oberhausen the yield level was significantly higher, at 6.6 %, respectively 6.5 %.
A slight compression of yields could also be noted in decentral locations. The mean value for all sub-markets of the Ruhr Metropolis stood at 6.7 %, 30 basis points below the level of the previous year.
A stable returns development is anticipated for the short to medium term.