Yield compression decelerates in European commercial real estate markets with weaker rental growth forecast
Alexander Kropf, Head of Capital Markets Germany regarding the DNA of Real Estate Report: According to our estimations, Berlin’s ongoing catching-up process as an international office location will continue. Given a vacancy rate of just 1.3 percent in the entire area and the continued high demand for modern office spaces, especially from the service sector, the prime rents are expected to grow at an annualised rate of around five percent over the next five years and, thus, will clearly exceed the 40 euros mark. This would put the capital city ahead of Munich for the first time since the dot-com era.
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