Germany avoided a double dip recession in 2012, but the final quarter disappointed with a GDP fall of 0.6%.
Office take-up in Q4 represented the strongest quarter of 2012, remaining above the long-term quarterly average across all major office markets. Despite this leasing activity, only Dusseldorf experienced positive prime rental value growth.
Whilst retail sales growth disappointed again in Q4, demand for retail space in the prime market remains strong, leading to prime rental value growth across all major high streets.
Q4 produced the strongest quarterly transaction volumes since Q4 2007 as the result of a number of sizeable transactions (>EUR200m) in the prime markets. Purchasers, however, also started to consider riskier portfolio deals.
Source : AXA Real Estate