Frankfurt: Chamber of Commerce also requesting new high-rises
"The market is ripe for new high-rises in Frankfurt" is the title of a new market estimate issued by the Chamber of Commerce and Industry (CCI) in Frankfurt am Main. The CCI thus agrees with the large real estate firms that urge the construction of new glass palaces in the metropolis on the Main. The reason for this demand is booming turnover in the Frankfurt property investment and office leasing market in the first half of 2007.
Turnover growth trend continuing in 2007
According the the CCI, the property transaction volume in 2006 in the Frankfurt/Rhein-Main area amounted to €18bn. This turnover growth trend will clearly continue in 2007. All signs are speaking in favor of more than 10% growth, meaning that the €20bn level will be surpassed, Mathias Müller, the vice president of the Frankfurt am Main CCI, forecasts.
Increasing demand paving path for new high-rises
"General market recovery and increasing demand for office properties are paving the path for new office projects, including high-rises," Müller continues. In order to ward off a further shortage of attractive, large and ultramodern office areas, new projects will have to be tackled. Although there would appear to be a high vacancy rate for office space, this is of no great significance, as the vacancies, he maintains, are to a large degree "a bubble made of non-marketable office areas urgently requiring renovation."