PROPERTY: Berlin premium segment in top spot, offices more dynamic than Frankfurt

An analysis published by the premium residential property company Dahler & Company claims that the volume of premium condominiums and detached and semi-detached houses in Berlin, Frankfurt, Dusseldorf and Cologne is increasing, while the markets in Hamburg and Stuttgart are in decline.

 
The study analysed data from the Property Valuation Committees in six of Germany’s largest seven cities, focussing on residential real estate transactions in the EUR 750,000+ segment, comparing figures for Q1 2016 with Q2 2015. Data from Munich was not included because the city’s Property Valuation Committee has not yet published the relevant information.
With the exclusion of the Bavarian capital, which is traditionally home to Germany’s leading premium residential property market, Berlin occupied top spot, registering an increase in transaction volumes of almost 50% to EUR 523 mln. The figures indicate that “Berlin is becoming a true European metropolis.” Berlin has become especially attractive for buyers from other German cities and international buyers, followed by Frankfurt.
Meanwhile, the Frankfurter Allgemeine Zeitung reported that 913,000 square meters of office space was let in Berlin last year. This is two-thirds higher than the ten-year average, and some 70% higher than the total in Frankfurt.
According to bulwiengesa, 150,000 new office jobs have been created in the German capital over the last ten years, and the Investitionsbank Berlin has forecast economic growth of 2.2% for the year ahead.
CBRE reports that 34% of the 2016 office lettings involved the technology, media and telecommunication (TMT) sector, which is dominated by start-up companies.
“As a result of the shortage of suitable office space, the Berlin market has become increasingly attractive for property developers in all areas of the city,” explained CBRE’s Mattias Hauff. Many developers are working on speculative projects, as demonstrated by the “Cube” near Berlin’s central rail station. (German Real Estate News – www.zitelmann.com )