Business Immo, the real estate website
Property Times

Berlin : Strong start to the new year - Q1 2014

Published on

A research produced by DTZ

With a take-up of just under 164,000 sq m the Berlin office market experienced its best start to the year for the past ten years. Take-up was well above the 99,000 sq m that was the average in the first quarter in that time. At 77,000 sq m, spaces of less than 1,000 sq m achieved their highest take-up for any quarter since the third quarter of 2009.

Meanwhile, since the third quarter of 2012 the achievable prime rent has been stuck at € 22.25 per sq m and month. By contrast the weighted average rent increased in comparison to the whole of 2013 by € 0.30 to € 12.60 per sq m and month. The proportion of leased spaces for which a rent of at least € 15 per sq m per month was agreed, rose to 30% and shows greater acceptance of higher rents in good locations.

The level of vacancies in the past three months dropped to 1.415 million sq m and at 7.9% is once again below the 8% mark. In each of the previous two quarters a vacancy rate of 8.1% was recorded.

In the current year we expect that a very high willingness to rent will continue on the Berlin office market. In our opinion, take-up should total more than 550,000 sq m by the end of the year.

Source : DTZ (Groupe UGL)

Keywords : DTZ