Alexander Kropf, Cushman and Wakefield’s German real estate expert, said the effects of Brexit can already be seen in the property market across Germany.
According to the expert, professional investors are withdrawing their money from the UK real estate market and and are looking for alternatives on the continent.
Mr Kropf, said: “Apparently Germany is turning out to be the significantly most secure option in comparison regarding the expected economic impact of Britain’s Brexit decision on Europe.”
According to the leading American property firm, the transactions on the commercial real estate market in Germany came to a value of £13.5billion in the first three months of the year and in the UK, it was only £9.8bn.
German newspaper, Die Welt, claimed last year Germany had already taken the Brits’ place on the market and that lead has now grown
Experts at Cushman and Wakefield expect an increase in office rents of 3.6 per cent in Berlin for each year.
Overall, Germany expects an economic growth of 1.2 per cent for the next few years as well as job growth of just below 0.2 per cent.
This raises the amount of retail real estate and the housing market, as those people who earn more can also buy more and even pay higher rents.
The EU’s Federal Minister of Finance, German Wolfgang Schaäuble, wants to lure the European Banking Supervision from London to Frankfurt as well as other financial institutions who need to open a new office within the bloc.
However, other managing directors, such as Alexander Eggert from investment management company, Warburg-HI invest, think London is still attractive.
He said: “Many of our customers still regard Great Britain as an interesting market.
“In the long term, nothing really speaks against an investment in London.”
Lloyds Banking Group has decided to set up a European base in Berlin once the UK leaves the EU.
US banking giant JP Morgan announced earlier this month up to 1,000 bankers will be relocated to Dublin, Frankfurt and Luxembourg.
British bank Standard Chartered also told its AGM its office in Frankfurt will be upgraded to a new subsidiary for ‘passporting’ rights.
With the UK likely to leave the EU single market, the banks want to ensure they can still cater for EU clients.
Authorities in Paris, Frankfurt, Luxembourg and Amsterdam have all said that they would welcome London-based banks when the UK leaves the EU.
The news of Germany’s property grab comes as the Bank of England Governor, Mark Carney, today said a consumer slowdown in the British economy since Brexit has now started to show.
He said: “For sometime, the responses of of financial markets and households to the UK’s decision to leave the EU have diverged.”