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Publication

Office Space

Germany office markets 2018

"Almost all of the evidence suggests that, for the next two to three years, office space will become even scarcer and correspondingly more expensive. Office occupiers would be well advised to prepare accordingly and develop strategies to deal with an even more acute supply shortage. Going forward, from 2020/21 the outlook is more unclear simply because we do not currently know how strong the growth in supply will be at that point. In addition, there are a number of factors (greater efficiency of space via co-working, slower urban growth and the ageing population) which are highly likely to result in slower growth in demand for office space, albeit this is almost impossible to quantify specifically owing to the complexity of the circumstances."

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Commercial Investment

Commercial property market Germany

" Interest for German property from domestic and international investors alike may well continue for some time. With bonds still relatively unprofitable, there remains a vast amount of global capital seeking investment in real estate. Moreover, Germany’s role as a safe haven is being further strengthened by unpredictable developments elsewhere in the world. The logical consequence is that competition among investors for German property will further intensify, maintaining significant pressure on yields. However, in view of the reversal in interest rate policy, at least in the USA, the era of yield compression is coming to an end. "

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Research

Residential market Germany 2018

"Conditions in the German residential market remain excellent for owners and investors. The population continues to grow, average household incomes rose at the fastest rate for ten years in 2017 and the unemployment rate is at its lowest level since German reunification. Furthermore, it is highly unlikely that this environment will significantly deteriorate in the foreseeable future. Residential investors are, therefore, expected to enjoy continued outstanding conditions over the coming years. However, this also entails certain challenges. Already, there are no longer any genuine hidden gems for investors to discover in the major cities and competition among bidders is correspondingly strong everywhere."

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Residential

Spotlight: Student housing Germany

" The number of students in Germany reached a new record level of approx. 2.8m in the 2016/17 winter semester. The number of foreign students grew more rapidly than the domestic total. However, there is an end to the growth in sight. Almost a third of the 60 largest university cities registered stagnating or falling student numbers last year. Nevertheless, there remains an undersupply of student housing in almost all cities. The provision rate is approx. 11%. "

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