BEST QUARTER AT THE END OF THE YEAR, EXCEEDING PREVIOUS YEAR'S TOTAL RESULT
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The Berlin office market confirmed the upward trend of the first three quarters at the end of the year, although it was unable to match the good results of 2021 and 2022. The main reason for this is primarily the continuing delayed economic recovery, which is still slower than expected at the beginning of 2024.
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Despite the challenging conditions in the last three months, it is nevertheless pleasing that the Berlin office market achieved its best quarterly result of the year in Q4, exceeding the previous year’s total result by more than 7% with 581,000 sqm now registered. The fact that the biggest deal in terms of take-up in the fourth quarter (20,300 sqm in the Hackescher Markt campus), was signed by Deloitte, also shows that in addition to the large-volume lettings by the public sector (in particular BImA), companies are increasingly getting active in the large-scale segment again.
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In line with this, take-up in the large-scale categories of over 5,000 sqm, which are usually the main drivers of high overall volumes, has risen by a remarkable 70% compared to the weak figure of 2023 due to the economic situation.
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In terms of prime rents, the strong momentum of the years up to 2023 has slowed in the last 24 months: at currently €45 per sqm, no change can be observed in the prime rent sector in 2024, as in the previous year. Slightly more movement was observed in the average rent segment, which has risen further and is approaching the €30 per sqm mark at €29.40 per sqm.