Office letting in H1 up 8% according to GPP

01/07/2019

According to figures from German Property Partners (GPP), take-up in Germany’s top 7 office markets rose by 8% year-on-year to around 1.86 million sqm in the first half of the year. Munich alone saw a 15% decrease in letting, but with 381,500 sqm the Bavarian state capital still ranks first, just ahead of Berlin (+15% to 380,000 sqm). Meanwhile, Berlin saw a new high in average rents (+18% to €24.20/sqm). The largest increase was in Hamburg (+24% to 310,000 sqm), while Düsseldorf and Stuttgart each increased by 18% to 214,700 sqm and 142,000 sqm respectively. Cologne saw a 16% increase to 145,000 sqm. GPP puts the average vacancy rate at 3.2%, as at the end of Q1 (H1 2018: 3.7%). Completion volume saw a robust rise from 930,000 sqm to 1.4 million sqm; however, 79% of this space is pre-let. The forecast is accordingly upbeat for the year as a whole (around 3.7 million sqm).


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