New data from BNP Paribas shows massive growth in the German office sector in the first nine months of this year compared to the same period last year. The data, from the firm's German real estate division shows that investors put 6.27 billion Euros into office property in the country up till September this year. That not only represents a growth of 50% compared to the same period last year, but is more than any year for the last 5.
According to the report Berlin and Munich were the favourite cities, with office investments rising 172% and 138% respectively, while investments in Düsseldorf, Cologne and Hamburg decline during the period.
"Safety-oriented investors see good conditions here due to the relatively stable economic and employment situation," Sven Stricker, head of investment at BNP Paribas Real Estate GmbH, said in his company's statement. "Office investments have a good medium-term outlook, assuming the Euro crisis doesn't escalate."
Investors are seeking a safe haven as they fear the Euro zone's sovereign-debt crisis will worsen, Stricker said.
Germany continues to attract safe-haven investors because it is Europe's largest and safest looking economy. Indeed, investors are quite happy to pay Germany for the privilege of lending to it, with yields on German bonds taking up residence in negative territory over recent months.
The German government predicts the country's economy will grow 0.8 percent this year, while the Euro-nations are expected to contract 0.4% on the whole.
- Friday 26 October 2012