No sign of a forthcoming German office downturn
The German office real estate market outlook remains bright, despite fears that the country’s economy will continue to stutter in the short to medium term.
In Property Market Index 2020, analytics firm bulwiengesa has found that commercial-zoned land and office accommodation are very much in demand in Germany with the sector continuing to move through a boom cycle. The index shows that the past four years have returned the highest aggregated office take-up totals since 1990 at more than 6 million square metres each year.
Office construction has failed to increase in proportion with take-up rates, meaning that vacancies are down to half of what they were in 2013 at 6.6 million square metres. Rents surged again in 2019, by 6 percent and bulwiengesa says that demand for office space in Germany’s A and B class markets is extremely high. Some C and D class markets have also benefitted from the office market boom.
“Germany’s economic motor has started sputteri