FRONTRUNNER AMONG THE GERMAN OFFICE MARKETS; SIGNIFICANT INCREASE IN TAKE-UP COMPARED TO 2023
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The Munich market for office properties recorded a take-up of 606,000 sqm in 2024, ranking just ahead of Berlin (581,000 sqm) and Hamburg (420,000 sqm) in first place among the top markets. Although the long-term average was missed by 17%, the weak previous year's result was clearly exceeded by 30%. The main drivers of the increase were lettings above the 10,000 sqm mark. Take-up in this segment increased tenfold compared to the previous year.
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It is pleasing to note that the letting momentum on the Munich office market was highly consistent in 2024. The final quarter was the strongest quarter recording a moderate year-end rally with take-up of 162,000 sqm.
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The large-volume segment in particular performed well in the fourth quarter. Two of the four largest lettings were reported in the final quarter. The largest deals in 2024 include the letting of 19,300 sqm on the airport site to the Technical University of Munich (TUM), which is developing an innovation campus there with the LAB 48/52, as well as 19,200 sqm of office space for the Bavarian State Parliament and the deal of Capgemini over 13,600 sqm in Prinzregentenstrasse.
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The very solid market development and the increased focus on premium locations and properties is reflected in the development of prime rents: prime rents have risen by 9% to €53.50 per sqm in the last 12 months. The average rent is listed at €25.00 per sqm.