C&W Head of Research & Insight Germany provides findings
In Gunnar Gombert's latest lecture, guest lecturer Helge Zahrnt, MRICS and Head of Research & Insight Germany at Cushman & Wakefield, spoke about current developments on the German commercial and residential property markets.
The investment market: waiting on the sidelines
The investment market in particular proved to be a complex playing field. Despite the prevailing professional optimism, many investors are still waiting and watching from the sidelines. Transparency is a key concept here: while the office property market remains under pressure, the market for logistics properties, for example, continues to gain popularity among investors despite a lack of transparency. This shift shows how dynamically and adaptably the investment market is responding to current circumstances.
Residential property market: from bore to hotspot
The residential property market, previously dismissed as boring, has developed into an increasingly important segment. The population has increased more than originally expected since 2010, mainly due to immigration and internal migration. This has led to increased demand for housing, particularly in the larger cities. This development shows how demographic changes and migration have a direct impact on the property market and keep it in motion. The residential property market therefore reflects social trends and remains an exciting field for market participants.
Office property market: challenges and opportunities
The office property market is facing particular challenges. On the demand side, there is a low take-up of space due to economic influences. Large lettings are becoming rarer and rented space is often smaller than before. On the supply side, the vacancy rate is rising, which is being exacerbated by numerous completions and an increased number of sublet spaces. Despite these difficult conditions, there are also positive signs: a "flight to quality" is leading to rising prime rents, while average rents in the top 5 markets are developing differently. These trends make it clear that the office property market is still on the move and offers both challenges and opportunities.
Many thanks to Helge Zahrnt and Cushman & Wakefield for the informative guest lecture. The many facts and figures presented provided valuable insights and linked theory and practice in an impressive way. It was an enriching experience for all IU property management students from Berlin, Munich and Frankfurt.