the Corona pandemic has caused rents in German retail to collapse in new contracts. Especially in the expensive metropolises there are sharp declines after years of boom, as a study by the real estate association IVD published on Wednesday shows.
the Accordingly, retail rents fell by a good ten percent on a national average in the first half of 2021 compared to the same period last year, which was only partially affected by the pandemic. In the seven largest German cities – Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf – they fell even more sharply by almost 13 percent, according to IVD. The declines in small and medium-sized towns, on the other hand, were significantly lower at around one percent to a good five percent.
The study looked at office and retail rents in thousands of new contracts. Prices in 370 cities and municipalities recorded by market reporters of the IVD were considered. According to the association, the IVD brokers, who also represent property managers and experts, advise around 40 percent of all real estate transactions annually in Germany.
Corona had only slowed the momentum of the past few years, said Schick. Office rents rose by more than ten percent between 2015 and 2019. In the pandemic, there was initially a lot of uncertainty about the future of work. But now the unemployment rate is falling again, which also supports the office market.