New property development in Germany suggests resurgence of economic power (DE)

Expected new property development in Germany, Europe's largest property market, points to a country rapidly growing in economic confidence, says Experian, the global information services company and leading economic and property forecasting group. There are 2.8 million square meters of office space under construction in the top five markets in Germany, which is over 4% of stock and indicative of improving occupier demand. This analysis is from Experian's new European data service, which provides supply and demand information to complement its existing property forecasting services.

Amidst record levels of foreign investment in German property, and an economy showing hesitant signs of a revival, the increase in construction activity has been noticeable. Simon Marx, head of real estate forecasting at Experian, comments: "The bulk of the activity is in Munich, where growth appears to be detached from the rest of the country. The two largest schemes are mixed use, but offices dominate the top ten."

With weak employment forecasts persisting, however, there is a possibility that the German market may end up oversupplied. "Our rental forecasts for the next few years are strongest in retail, a format which is proving popular amongst foreign investors," continues Marx. "Office projections are positive but unimpressive, particularly when compared to the rest of Europe. But a return to the oversupplied office markets of a few years ago is unlikely. Almost half of all office developments have already been let and occupier demand for the remaining new space has not diminished. The main risk is to poor quality office space."

The major city with the smallest development pipeline is Stuttgart. "Baden-W

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