In 2024, the office real estate market continued to be characterized by adjustments, driven by the changing world of work and the ongoing challenges in the economy. While hybrid working models remained standard in many companies, an opposing trend emerged towards the end of the year: the desire for more in-person work and less working from home is becoming increasingly important.

Stabilization and return to office work

  • Demand for space increases slightly: Companies are rethinking their work concepts and are increasingly moving back to face-to-face work. Studies and empirical values show that collaborative working methods and commitment to the corporate culture are better supported in offices. For 2025, it is becoming apparent that many companies will switch to hybrid models with a maximum of one home office day per week.
  • Focus on high-quality office space: ESG-compliant properties with modern working environments remained the preferred choice in 2024. Demand for flexible, well-equipped space increased, particularly in central locations.

Factors influencing the office real estate market

  1. Changing world of work: With an increasing return to face-to-face work, the demand for optimally equipped office space is growing, especially in urban centers.
  2. Sustainability requirements: ESG-compliant buildings remain a key factor, as they not only fulfill regulatory requirements but are also considered a competitive advantage for companies.
  3. Interest rate trends: The high financing costs will continue to influence the market in 2024, but a slight reduction in interest rates expected in 2025 could stimulate investment activity.

Regional trends and differences

  • Core locations: Demand for office space in metropolitan areas remained stable in 2024 and could increase further in 2025 due to the increased return to the office. Centrally located and ESG-certified space remains the preferred choice.
  • Peripheral locations: Pressure remains high in peripheral locations. Older buildings without modernization potential continue to suffer from vacancies, while modernized or flexible properties could benefit from rising demand.

Outlook for 2025

The office real estate market is on the verge of a potential recovery, driven by the following trends:

  • Less home office, more presence: companies are recognizing the added value of physical workspaces for productivity and corporate culture. This trend could lead to a further stabilization of demand for office space.
  • ESG as a key competitive advantage: Modern and sustainable properties remain in demand, while older existing properties will continue to lose their appeal if they are not modernized.
  • Flexibility remains in demand: rental models that include flexible contract terms or co-working concepts are becoming increasingly important.

Conclusion:
2024 was a year of transition for office properties. With the return to more on-site work and a slight easing of interest rates, new opportunities could arise for investors and landlords in 2025. High-quality office space in central locations will remain the key element of a successful strategy, while older and peripheral properties will continue to be caught between modernization and loss of value.