to revive the economy. At a time when uncertainty reigns supreme, the office sector has also been hit hard by the need to convert to smart working. How will the situation evolve? Well, we will give you the answer to this question. But we can analyse for you and with you the current reality that is plaguing Germany and the office sector. So if you are ready, we can start!
As always, before we get into the heart of our columns, it is essential to analyse the numbers. The figures for the last two weeks leave no room for interpretation. In fact, in the last quarter, the total amount of office space for rent in the major German cities decreased by 38% compared to last year. This means that the smart working effect has devastated this real estate sector. So which cities are affected by this frightening slump?
In first place we find Berlin which, strangely enough, has allowed itself to be caught up in this economic drama. In second place is Munich, followed by Hamburg, Stuttgart, Frankfurt, Bonn and, last but not least, Cologne.) But to understand how much Germany and its offices have lost in economic terms, it is worth quantifying the monetary value ‘moved’ over the same period. Did you know that one of the most important European powers for the international economy lost 18,940 million euros? A considerable figure that threatens German financial stability.
Let us now turn to the experts to see how Germany and its offices can recover in the coming months. Strange but true, the experts are preaching calm. In a historical period like the one we are living through, according to the statistics, Germany is defending itself well. Put simply: it could be worse. The difficulties that the German nation is experiencing in the office sector are not unique to Germany. Compared to the European average, Germany has defended itself very well in the real estate and rental market.
So what are the possible developments for Germany and its rents? We remember you that smart working has been very successful, so many companies will continue along this line. But there is a further possibility. The conversion of offices into coworking zones, in compliance with all anti-Covid regulations. While waiting to find out which of these two scenarios can be realised, we invite you to stay updated on our Realigro Blog portal! Every day you will find new columns that will inform you about what is happening in the international real estate market. But not only. There are many sectors that are linked to the real estate market, so it would be a shame to exclude them. So, keep up the good work! Stay tuned to your favourite frequency, that of Realigro!
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