Gif forecast: Euphoria is waning, Berlin better than expected

18/12/2018

The outlook for the five largest German office leasing and investment markets is positive, but no longer euphoric. Particularly with regard to top yields, the experts surveyed by gif and CRES no longer anticipate any movement for 2019. Top office rents, however, are expected to continue to rise in all five markets, most strongly again in Berlin (+5 %), followed by Hamburg (+4 %). Vacancy reduction will continue as well, particularly in Frankfurt and Hamburg. Berlin above all developed better than expected in the past months. In the spring, it was still considered unlikely that the city would drop below the 3 % mark, but it has done so since then. Top office rents, on the other hand, reached €33/sqm/month before the end of the year, a figure that was originally expected no sooner than late 2019.


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