Berlin/Potsdam market continues to grow, says Hochtief study

The real estate market in the Berlin/Potsdam metropolitan region continues to flourish despite the financial crisis, according to a study by Hochtief and TLG Immobilien, presented at the EXPO REAL fair in Munich on Monday.

The report shows that total development pipeline in the region has increased by 20% this year, reaching 5 million m². Project development including completed projects as well as developments due for completion by 2012, increased by as much as 1 million m² over 2008. A total of 804,000 m² of commercial and residential space worth EU1.5 bn was brought to the market this year, an increase of 25% on 2007’s figure. Aside from an increase in the number of development projects, the declining vacancy rate and the rising top rents reflect this development,’ said TLG Immobilien’s Jörg R. Lammersen.

While downtown retail properties under construction dominated the 2007 survey, their share dropped from 30% to 14% in 2008, equalling a total of 382,500 m² in completed lettable floor space. This is the result of a shift toward residential projects, the report says. These accounted for nearly half of the entire market. Office projects continue to dominate the development market, amounting to 45% or about 1 million m² in lettable space.