TAKE-UP IMPROVED Y-Y-O, BUT STILL NOT AT THE LEVEL OF THE 10-YEAR AVERAGE
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By the middle of the year, the Berlin office market is among those markets which record a rise in take-up year-on-year, but where market activity is still below with long-term average. At mid-year 2024, a take-up volume of around 281,000 sqm is registered. Thus, the half-year result for the capital is a good 7% above the prior-year figure, but also 20% below the long-term average.
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This general trend, which reflects the overall situation in Germany’s most important office locations, can also be observed in the other two top markets Munich (293,000 sqm) and Frankfurt (215,000 sqm).
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A good sign of a broadly diversified demand structure is reflected in a number of major contrats lately signed such as BImA's two owner-occupier deals for the Federal Chancellery (25,000 sqm) and the Office of the Federal President (9,900 sqm) both in the Charlottenburg/Tiergarten submarket. Another example is BImA's lease contract in Mitte (25,200 sqm).
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On the other hand, the smaller space categories of up to 2,000 sqm accounted for around half of the overall result with a take-up share of almost 49% and are therefore of significant importance.
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In terms of prime rents, the momentum of recent years has slowed noticeably: There have been no changes in the premium rental sector over the past 12 months. Prime rents are at €45 per sqm, and the average rent for the entire market stands at €28.80 per sqm as of mid-year.