News from 06/27/2008
Berlin: 235,000 sqm office space takeup in first half year
According to the current office market report compiled by Colliers Geske Immobilien, office space takeup in Berlin rose by some 25,000 sqm to ca. 130.000 sqm during the second quarter of 2008 compared with the first quarter. Thus, during the entire first half of 2008, approximately 235,000 sqm of office space were rented. However, this means a setback of around 7% compared to the same period in the previous year. Colliers Geske is expecting a result of about 600,000 sqm for the entire year. The development of rent prices, Colliers Geske says, is still stable. Rents in the inner city are still climbing; peak rents currently range between €20 and €26/sqm.
Hamburg: Office space takeup slackened during first half year
The figures presented by three brokerage houses show that space takeup on the Hamburg office market fell back during the first half of 2008 compared to the same period in the prior year. According to Colliers Grossmann & Berger (CGB) and Engel & Völkers, space turnover compared to the previous year dropped by 12,000 sqm to 280,000 sqm. Nevertheless, the result is higher than the ten-year average, CGB says, expecting that the 500,000 sqm mark will be surpassed for the entire year. Oliver Horstmann from Engel & Völkers Commercial Hamburg says, "Even if we don't reach last year's amount of 572,000 sqm, the total turnover situation is certainly agreeable." This forecast is also affirmed by Angermann, according to whom there was a turnover of 268,709 sqm of office space (2007: 309,748 sqm) within the Hamburg city limits during the first six months. It will be difficult, Angermann said, to match last year's record turnover, "as the banner year of 2007 was characterized by extraordinarily large-scale rentals." Peak rent, according to CGB, is stable at €23.50/sqm, while Angermann estimates approximately €24/sqm.
Europe: Fewer transactions on investment market
According to Savills Research Europe, price corrections on the European investment markets are taking place in a more rational fashion this year than during the second half of 2007. There are said to be fewer "compulsory sales" than had been expected. The total number of investment transactions, however, has dropped massively. The reasons for this, Savills says, are the reduction in portfolio transactions and a generally higher demand for properties and plots worth less than €100mn. Moreover, less outside capital is said to be available, and investors have withdrawn from markets thought to be comparatively risky such as Eastern Europe. During the first quarter of 2008, compared to the same period in the previous year, the number of transactions fell back by 55% in France, by 50% in Great Britain and by 26% in Germany, Savills reports, adding that demand is focusing mainly on high-quality commercial properties.
Greifswald: Two bidders for municipal apartment firm WVG
The city of Greifswald intends to sell 49.9% of the shares in the municipal apartment company (WVG). According to mayor Arthur König, two bidders—a property corporation belonging to a major bank, and a North German residential firm—have submitted bids amounting to approximately €60mn. WVG owns about 10,000 apartments and manages a further 1,500 for third parties. The city council, König says, will make its decision either on June 30 or at a special meeting on July 8.
Berlin: Vivacon to invest €210mn in luxury residential projects
Cologne-based Vivacon AG plans to invest nearly €210mn in four luxury residential projects during the coming years. Commencement of construction is imminent for the "Living 106" project on Chauseestrasse comprising some 60 condominiums with 5,300 sqm of usable area. Completion is scheduled for the end of 2009. Within the "Am Zirkus" development project, the firm wants to start building a Philippe Starck apartment house with 100 units. Completion is slated for the end of 2010. The "Luisen-Karree" project at Köllnischer Park should probably be getting started in January, 2009. Here, 375 condominiums including approximately 26,000 sqm of living space are planned. The already existing buildings are to be renovated and supplemented by new ones. The "Britzer Parkvillen" project in Berlin‘s Britz district is already under construction: in nine landmarked art-nouveau villas on the garden area of a former hospital on Blaschkoallee comprising 29,000 sqm, 78 condominiums are being developed. Completion of the first houses is targeted for the end of 2008.