When you think of Frankfurt, the first thing that springs to mind is the skyline with its impressive skyscrapers, which house a wide variety of companies (especially banks). As beautiful as this is to look at, rents in the city have become correspondingly expensive. This comes as no surprise, as demand for Frankfurt as a business hub remains as strong as ever. With over 735,000 residents, Frankfurt ranks among the top five most populous cities in Germany, trailing only Berlin, Hamburg, Munich and Cologne. And this growth is far from over: by 2030, the population is set to rise to as many as 841,000. The office market could also significantly exceed the highest proportionate take-up since 2007, which stood at 546,000 square metres. High rents are usually a nuisance, but in Frankfurt’s case, the city’s popularity brings many benefits.
Strong interest in Frankfurt’s property market
For investors, Frankfurt has always been an attractive property market. This is due to its favourable economic and demographic conditions. Over 60,000 people are employed in Frankfurt’s financial institutions alone, and the city on the Main is attracting ever more banking professionals. The fact that it is home to the European Central Bank, its central location within Europe and the nearby airport make Frankfurt an attractive property location – including for commuters. But Frankfurt offers not only a breathtaking skyline, but also extensive green spaces that provide opportunities for relaxation. The high level of legal certainty is the icing on the cake. Large-scale core properties are ideally suited to the city, and investors are becoming increasingly enthusiastic about them.
Consequences of Brexit for Frankfurt as a property market
Given its international character, Frankfurt’s property market is not immune to the consequences of Brexit. Banks are keen to relocate their staff from London to Frankfurt following the UK’s withdrawal from the EU. This means even more residents for the already densely populated city. School places could become a further issue here. Some banks are guaranteeing their high-calibre staff fixed school places to make the decision to relocate easier for them. This mainly affects private schools, which receive advance bookings from the banks and thus reserve one or two places per year group for the children of bank staff. Such circumstances are also fuelling a boom in Frankfurt’s housing and office markets. The vacancy rate for office space is falling steadily, forcing investors to act immediately. A significant number of major deals have already been concluded to keep pace with the high demand.
For some employers, a location in a business centre in Frankfurt would be extremely attractive, but it is a challenge to find a suitable – let alone affordable – office in the first place. This is where the COLLECTION Business Centres offer the perfect alternative: simply rent an office. These are fully equipped and come with a range of convenient services, such as a dedicated postbox and a telephone service. This allows you to offer your clients a prestigious business address in one of the most thriving major cities without having to dig deep into your pockets.
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