Business in Europe: new trends in the office real estate market

Prices foroffice rentfell during the euro crisis in 2012 and 2013, then started to rise slightly again in 2014.
From 2016 through 2019, the annual price increase for thecommercial real estatewas just over four percent before it began to accelerate in the first quarter of 2020 due to the suspension of construction projects as a result of COVID-19.

While real estate price levels in the euro area and the EU rose by 4.5% and 5.0% respectively in the fourth quarter of 2019, inflation had already accelerated to 5.0% and 5.3% respectively by the third quarter of 2020.
Thereafter, annual price growth accelerated steadily to 8.8% (euro area) and 9.2% (EU) until the third quarter of 2021. This is the highest annual increase in the euro area since data collection began in 2005.

Where are the prices going up right now?

According to Eurostat, particularly strong price increases in the third quarter of 2021 were observed in Lithuania (18.9%), Estonia (17.3%), the Netherlands (16.8%) and Luxembourg (13.4%). As for other cities, Eurostat does not publish current data.

Your investment opportunities

It is possible to invest in promising, innovative cities with a high quality of life and rich human traffic. Berlin, for example, falls into this category: with an average rate of 6500 EUR/sqm and an average monthly rent of 14.30 EUR/sqm. Because of the economic recovery in Poland, and still relatively low costs, around 2406 EUR/m2, Warsaw is also attractive.

But be careful what you decide to do.commercial real estate investmentsabroad.