The Office Property Market in Germany

Dr. Franz Eilers and Thomas Hofer, vdpResearch

When examining the latest developments in the office property market in Germany, it is necessary first to make a distinction between the leasing market and the investment market. The leasing market, which is where offices are offered by their owners for rent and are in demand among firms, is currently in good shape. The future prospects, too, appear to be more positive than they have been for a considerable time.
This is true of the investment market only up to a point, however. In this market, it is not rights to use office space that are offered and are in demand: this is where ownership rights to existing office properties are bought and sold. There is no doubt that the investment market is booming at present. Yet boom phases are often linked to inflationary developments. Against this background, the question is whether the growth seen in recent years – without leading to price exaggerations – can go on.