X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BERLIN-The office market in Germany’s capital city is set to continue growing in spite of the threat of a global economic slowdown, claims FPD Savills. The market has now recovered from the massive overbuilding of the early 1990s and, following the relocation of Germany’s seat of government from Bonn, an increasing number of companies are choosing to set up their headquarters in the city. Prime office rents have now recovered to €33.23 per sq m per month ($34 per sf per annum).

Eri Mitsostergiou, European research analyst at FPDSavills, said that Berlin now has the strength to survive economic turbulence in the long term. ‘We believe Berlin is in a strong position and the city’s renaissance will be driven by the fact that it is the new capital of Germany and that it will be very well positioned in the eastward expanded European Union,’ she said.

The report also highlights the improving investment market, with prime achievable yields currently standing at around 5%, although most transactions are reflecting between 5.25% and 5.75%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.