German office investment market

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European leader in the commercial real estate market

In the first three quarters of office space take-up was just over 2. Take-up was only around 2. On the investment side, Up to the end of September a take-up of just over 2. This is the second investmwnt result of all time and only 2. However, there have been some very different developments in the individual locations. In particular the inadequate supply of space is responsible for this, and as result not all property searches can be satisfied.

European leader in the commercial real estate market

This will stimulate demand for office space, while supply expands only moderately. The office markets in Hamburg and Munich as globalisation winners are likely to benefit most from this. Rental yields attractive on a European comparison. Initial yields on offices in prime locations are still well above long-term government bond yields. Although we expect rental yields to fall in response to sustained investor interest, they will not fall to the low levels of London or Paris.

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International residential reports Regional residential reports Hotel reports Office reports. Read this publication. The prime yield in these locations held at 3. This trend can in part be attributed to the fact that property developers are only engaging in speculative developments in smaller cities to a offlce extent, which means the amount of space available tends to drop rapidly in line with high take-up activity. Read. The job market plays a key role. Investjent rent trend picks up speed. Despite somewhat lacklustre economic performance and geopolitical tensions, the German office markets are still in excellent shape. At Savills, our most valuable resource is our people.