German GDP in Q4 of 2012 declined by 0.4% due to decline of production and low levels of investment activity. Unemployement rate recorded by Eurostat is stable and remains at 5.4%.
Yet it becomes more and more visible that the general economic environment in Germany has improved, mostly thanks to fact that the breakup of the European Monetary System no longer poses a direct threat. Moreover, the European Central Bank has announced its intention to undertake government bond purchases from the countries affected by the crisis. An additional factor contributing to the improvement of German economy was the introduction of ESM (European Stability Mechanism) and the resumption of financial support for Greece.
IVG Immobilien AG’s analyses indicate that in 2013 German GDP will grow by 0.7%, and by 1.8% in 2014. Inflation rate will remain below 2% as consequence of slow economic growth and and weaker labour market.
Aggregated take-up in the seven major markets (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart) fell by 8% compared to 2011. The highest take-up was in Berlin and Munich, whereas Frankfurt was the only market which experienced an increase. In 2012, vacancy rates in Germany fell from 9.2% to 8.5% due to a low number of closed deals.
In 2012, German office investment market had a high office transaction volume of 10.7 bn €. It is estimated that in 2013 investment demand will remain high.
Among the largest deals there was the sale of Frankfurter Welle for 410 mn € and Junghof (135 mn €) in Frankfurt, as well as Ten Towers (206 mn €) and Angerhof (150 mn €) in Munich.