German office market economy shows first signs of recovery – market remains in recession phase


Munich, 26 August 2021 - The German office property market remains in recession, but has recovered slightly in Q2 2021. Having declined for three consecutive quarters to a low of -1.51 index point in Q1 2021, the pbbIX office market index improved to -1.23 index points in Q2 2021. A further recovery of the overall economy and with it the office markets appears possible, but uncertainties due to the COVID 19 pandemic remain and delayed negative effects cannot be ruled out.

The increase in the pbbIX was driven in particular by the improved overall economic situation in Germany and a rise in office investments. The Germany economy improved significantly in the second quarter of 2021. According to first estimates of the German Federal Statistical Office, real gross domestic product showed an increase of 1.5% compared to the previous period. In addition to public expenditure, private consumption was the main contributor to this growth. However, economic output remained well below the precrisis level. 

Demand for office properties also picked up with just under €6 billion spent across the big 7 markets in Germany. This development indicates that the office investment market is slowly but surely shaking off the negative effects of the pandemic. Initial yields responded accordingly, trending downwards for firstclass properties in the second quarter. Demand for rental space on the other hand remained on a low level when compared to the precrisis levels.

Regional office market economy also continued to be negative, but there are still considerable differences. The most marked recovery has taken place in Berlin and Hamburg, which each gained 0.5 points to -0.43 and -0.93 index points respectively. All other submarkets continue to show index levels below -1 index points.

The full Q2 2021 report is available at

Notes to the editors:

The pbbIX ( index family comprises a composite index, as well as seven sub indices tracking the key German office property markets of Berlin, Cologne, Dusseldorf, Frankfurt/Main, Hamburg, Munich and Stuttgart, including their respective catchment areas.

pbbIX describes the development of the office markets. The zero line corresponds to the long-term trend. If the index is above the zero line, the office market is better than the long-term average. From a value of -1.0 points, one speaks of a crisis.

The indices, which pbb publishes in cooperation with vdp Research, provide investors and lenders with comprehensive information on the current perfor-mance of office properties in Germany.

pbb Deutsche Pfandbriefbank ( is a specialist lender for commercial real estate finance and public investment finance in Europe and the United States of America.

Media Contact:
Walter Allwicher, +49 89 2880-28787, walter.allwicher(at)