The IVG Market Report Germany 2013 analyzes the country’s office sector by looking at the changes in the economy, rental activity as well as top markets and regional ones.
KEY FINDINGS OF THE REPORT
• Vacancy rate continued to decline in Germany’s top markets.
• Decreased demand and take-up affected almost exclusively the peripheral locations, while the reduction of vacancy rates took mainly place in the inner-city locations.
• In 2013, supply and demand on the rental markets will remain largely in balance.
• The transaction volume in the office segment grew by more than 50%.
• Initial yields for prime office properties dropped on an average from 4.99% to 4.84% last year.
• Munich rated best among 74 German office locations.Other five major markets: Frankfurt, Cologne, Berlin, Stuttgart, Dusseldorf.
• Regional centers at the top: Hanover, Nuremberg, Wiesbaden.
• Real estate financing could be a stumbling block to real estate investments in 2013 due to stricter banking regulations.