L’ Office e l’ Investment market delle 7 top locations in Germania , secondo German Property Partners : numeri oltre le aspettative


  • New record result for Germany’s top 7 office letting markets: a total of 4.1m m² of office space had been taken up by the end of the year. Compared with 2016, this is an increase of 4 %.
  • Due to persistently low supply, GPP expects a lower year-end total for 2018, but “the market for office letting in Germany will continue to boom in 2018,” remarks Guido Nabben, spokesperson for GPP.
  • The biggest year-on-year increase was recorded in Frankfurt with a 30 % rise to a total take-up of 728,300 m², followed by Hamburg with an increase of 16 % to a total of 640,000 m² and Munich (+15 %, 878,000 m²). The year-end total for Düsseldorf was 358,700 m² of office lets and thus 8 % higher than in 2016. The office market in Berlin surged forward to the best result of the 7 locations and total take-up of 880,000 m² (+7 %).
  • Only Cologne with a take-up of 310,000 m² and Stuttgart with a take-up of 270,000 m² reported a drop of 30 % respectively 38 % due to exceptional results in 2016.
  • The share of take-up of office space of operators of co-working space or business centres totalled 214,000 m² and represented some 5 % of the total take-up of space, or nearly three times the amount rented in 2016.
  • In Berlin, rents have risen more than in any other top 7 location: the average rent rose by 18 % to €19.00/m²/month and the premium rent rose by +9 %, thus reaching €30.00/m²/month for the first time. Slight declines in average rents were registered only in Cologne (-3 %) and Hamburg (-2 %), a tiny slippage in premium rents was noted in Munich (-1 %).
  • The vacancy rate fell to 4.1 %. This represents a reserve of available space of only 3.7m m².



  • At the close of 2017 the volume of investment transactions in commercial properties (excluding buy-to-let residential) had reached a total of €30.0bn in Germany’s top 7 investment locations. This represented an increase of 4 %. “This level of investment underlines just how huge demand remains for every type of commercial property asset”, states Guido Nabben, spokesperson for GPP.
  • International investors accounted for nearly half of the result.
  • Totalling € 9.2 bn, almost one third of the transaction volume at the top 7 locations was attributable to their respective Central Business Districts (CBD) or central inner city areas.
  • Overall the office sector was the most traded class of asset in all top 7 locations, with sales of €21.8bn (+5 % year on year). The hotel sector placed second (€2.4bn and -10 %), barely ahead of retail properties (€2.3bn and -1 %).
  • At the end of 2017 Berlin posted the biggest increase in the volume of transactions, which rose by +45 % to €7.3bn. Cologne also set a new record with year-on-year growth of 28 %. GPP also noted a new record in Düsseldorf, where the sales of commercial properties reached a total of €3.0bn by the end of the year (+ 13 %). The total volume of transactions in Frankfurt rose by 2 % year on year to €6.6bn.
  • The sales volume in Munich was €5.7bn, despite a 12 % drop compared with 2016. This decline is due to an appreciable reduction in available properties. In Hamburg, the volume of transactions, totalling €3.9bn, fell 13 % short of the record result of the prior year, when €4.5bn was posted. Stuttgart generated a transaction volume of €1.2bn and thus more than a third less than in the record year of 2016.
  • The average prime net yield continued its downward slide across all asset classes and top 7 locations. GPP noted the lowest average prime net yield at 3.06 % on commercial buildings, followed by 3.26 % on office buildings. The downward trend was most obvious for logistics properties, with yields falling by 0.34 percentage points to 4.69 %.
  • Net prime yields in the top 7 slipped further, with a decline in the average office prime yields to 3.26 % and that on commercial properties down to 3.06 %. The yield range for office properties settled between 2.9 % in Hamburg and 3.7 % in Cologne. Prime yields for commercial properties were lowest in Munich with 2.45 % and highest in Düsseldorf with 3.5 %.
  • Due to a shortage of properties for sale, GPP does not believe that the year 2018 can fully repeat the performance of 2017.


Source : Company