Rent increases for prime office and retail space slacken

Back to news summary 05/03/2015

According to the DG Hyp study "Main Regional Real Estate Markets in Germany 2015," rent for commercial property continues to rise, but has lost momentum. Last year, the average prime rent for office space in the top 7 locations rose 2.4%, while in the regional centers Augsburg, Bremen, Darmstadt, Dresden, Essen, Hanover, Karlsruhe, Leipzig, Mainz, Mannheim, Münster, and Nuremberg, the rise was only 0.7%. Growth has thus slowed since 2013 both in top locations (2013: 3.4%) as well as in regional centers (2013: 2.7%). For the new year, DG Hyp said it expects growth to weaken to 1.7% in the big seven office locations, but to strengthen somewhat to 1.3% in the regional centers. For retail space, DG Hyp predicted that the growth of prime rent in the top locations will decline from last year's 4.7% to 1.7% this year. In the regional centers, the forecast decline is from 2.6% down to 1.1%.