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Home Real Estate Office space

The Berlin real estate market and vacancy rates

by Inside Network
January 25, 2020
in Office space, Real Estate
Berlin photo of the city

Berlin is and has always been a very diverse city. This diversity is what lures more and more businesses to the German capital. The office space take-up rate in Berlin has increased sharply in the last two years with 2019 seeing a take-up rate of nearly 15%

This healthy interest in office spaces has reduced the availability of rental space to just under 7.5% This is one of the lowest rates in all of Europe and it is set to drop even more in the coming years. In order to tackle this problem, the city of Berlin has made it more attractive for property investors to develop new office spaces in the area.

Office developments are planned for all of the Berlin suburbs/areas, but several developments will be focussed exclusively on the Mitte area. Since this part of the city is one of the most popular areas for businesses, development here is essential.

Upcoming development in the Berlin area

Several new building projects are ongoing in the Berlin area and it is forecast that an additional 390 thousand square metres of office space will be ready for occupation by the end of 2020. Due to the acute shortage of office space in the Berlin area, rent prices have been rising steadily and this addition of rentable space will aid in stabilising rent prices in Berlin.

True to the character of the city, the additional developments will include a mix of properties that range from offices for small start-ups to spaces for large corporates. Berlin is made up of several distinct areas and the largest shortage of office space can be found in the city centre/Mitte area. Rent prices in Mitte also reflect this shortage with an average rent of 615 euro per square metre.

In conclusion

Berlin is a great place to establish your office as it offers all the infrastructure that any business may need. With several large corporates establishing offices in the area, the Berlin property market is set to grow at an ever-increasing pace.

Tags: BerlinGrowthGuideStartup & ScaleupVacancy rates

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