Real-estate market

London's Loss is Frankfurt's Gain

The purchase of Cannon Place, a huge office development in central London, has fallen through.
  • Why it matters

    Why it matters

    Frankfurt is experiencing a house-price rise that may be unsustainable and could price new buyers out of the market.

  • Facts


    • Between June 2015 and May 2016, rents in Frankfurt climbed 8 percent, apartment prices by 23.5 percent and buildings by 15 percent.
    • Almost 9 percent of Frankfurt office space is currently empty.
    • Following the June 23 Brexit vote, many predict that London’s real-estate market will cool.
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Ralf Werner has just signed off on deals for a number of penthouse flats in downtown Frankfurt for price tags ranging from €700,000 ($763,000) to €1.8 million.

“One day after the Brexit vote we had London bankers reserving four of our last six flats,” he said, referring to a luxury accommodation block within easy walking distance of the skyscrapers that house the city’s top banks.

Mr. Werner doesn’t know if the British bankers who are buying Frankfurt flats plan to move to the German city themselves – or if they want to rent them out.

Britain’s resounding “no” to the European Union last month has turned out to be a loud “yes” to the German real estate market.

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