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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%.

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