Peak rent development follows national trend
215 euro/m² FS
Top rent level 2017
27 bn euros
The demand volume (all key categories of goods) in the Ruhr Metropolis totalled some 27.0 billion euros in 2017, representing a rise of 1.5 % or 411 m euros compared to the previous year.
Basic commodities accounted for 53.4 % or 14.4 billion euros. Within the aperiodical category of goods fashion accounted for 12.3 % or 3.3 billion euros, as was the case the previous year, followed by construction/garden/leisure with 10.3 % or 2.77 billion euros and furnishings and fixtures at 9.1 % or 2.46 billion euros.
In the regional distribution of demand volume, as in the previous year the district of Recklinghausen (3.29 billion euros / 12.2 % share), which has the most inhabitants, was at the top. Places two and three went to Essen (3.2 billion euros / 11.9 %) and Dortmund (3.0 billion euros / 11.2 %).
The centrality rating of the Ruhr Metropolis stands at 105.1 and indicates inflows of purchasing power from the surrounding area.
"In the short to medium term a stable development is anticipated for net initial returns."
Top rent level
The top rent level for 1a retail locations displayed a stable development in 2017 and stood at 215 euro/m² floor space (FS) within the year, at the level of the previous year. With this, the mean value of the A locations (unweighted) of 289 euro/m² FS still visibly fails to be met, although the average of the B locations of 135 euro/m FS is significantly exceeded.
The 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 moderate rise in rent to 217 euro/m² FS is forecast for 2018.
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 37.10 euro/m² FS at the end of 2017 (previous year 37.80 euro/m² FS).
The range extends from 18.00 euro/m² FS in Oberhausen and Witten to 117 euro/m² in the top location Dortmund.
Net initial returns
The net initial returns (prime yields) for retail properties in central locations fell moderately compared to the previous year, by 20 basis points, to 4.2 %, 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 7.2 %, respectively 6.7 %.
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 7.1 %, 40 basis points above the level of the previous year. In the short to medium term a stable development is anticipated for net initial returns.