PRIOR YEAR'S RESULT EXCEEDED: MUNICH TAKES THE LEAD AMONG THE TOP MARKETS
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The Munich office market experienced good letting momentum in the first half of the year: With a total take-up of 293,000 sqm, the Bavarian capital ranks at the top of Germany's largest office markets.
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Even though the current result falls short of the long-term average of around 346,000 sqm (-15%), the significant increase in take-up of 24% compared to the same period last year underlines the lively market activity in the first six months.
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In this context, it is pleasing to note that the good market momentum is not only reflected in the volume, but is also supported by a noticeable rise in the number of contracts signed.
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Nonetheless, good results in terms of take-up are mostly based on individual major deals. An example is the laying of the foundation stone for owner-occupier Bayerische Versorgungskammer in the TRIDEA office complex in Munich-Bogenhausen which was one of the main factors driving the result in the past three months (q2). However, given that 55% of the recorded take-up volume was generated in the segments below 2,000 sqm and 45% in the categories above this level, we consider the overall distribution of take-up to be balanced.
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The good letting momentum is also reflected in the rent development: at currently €52 per sqm (+11% compared to H1 2023), Munich remains at the top in nationwide comparison. At mid year, the average rent stands at €24.60 per sqm.