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DG HYP publishes Real Estate Market report 2016|2017

Strong demand in metropolitan areas - lack of supply in Office floor space follows shortage in residential space

The real estate markets in the prime Locations DG HYP's latest market report covers – Hamburg, Berlin, Cologne, Dusseldorf, Frankfurt, Stuttgart and Munich – have continued to benefit from the positive economic environment. Hence, the trend of rising rents remains intact, even though the upward momentum seen over recent years cannot be maintained, despite strong demand. Given the high rent levels reached already, there are signs of saturation for retail real estate, particularly in top locations, whereas rent increases in the office and residential sectors are increasingly the result of a decline in available space. Whilst the housing sector is burdened by a lack of completions, the development of office markets is being impeded by the level of construction activity, which is still too low. We will discuss the causes holding back stronger growth in more detail in a separate chapter. Furthermore, this market report looks at opportunities for the German office market in the wake of ‚Brexit‘, and illustrates different yield developments for commercial real estate in the seven German economic hubs.

DG HYP's new report is available for download in PDF Format.