Coworking growing only in Berlin
An analysis by BNP Paribas Real Estate (BNPPRE) finds that growth in the coworking sector has slowed for the time being. Around 80,000 sqm of office space was let to coworking providers in Germany’s top 6 cities in H1 2019, down from around 210,000 sqm in the past year. Berlin is bucking the trend: coworking companies signed contracts for around 48,000 sqm in H1 2019, after slightly more than 75,000 sqm in take-up was recorded for all of 2018. Andreas Völker, Managing Director of BNPPRE, says that the decline on the overall market is less due to market saturation or the end of providers’ expansion efforts. It is more the case that providers have to consolidate their locations after 2018’s record take-up. The shortage of supply also had a limiting effect. Not even half of the coworking space in Germany is bringing in a profit.
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