Bankers moving to Frankfurt due to Brexit 'could drive up housing prices'

The Local
The Local - [email protected] • 25 Jan, 2017 Updated Wed 25 Jan 2017 17:00 CEST
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Germany's financial hub is already looking more attractive to London bankers as Brexit looms, which could in turn mean more expensive housing in the Hessian metropolis, according to some experts.

Last week it was reported that US bank Goldman Sachs would be moving 1,000 London staff to Frankfurt as part of post-Brexit reorganization.

In fact, the transfer of workers to other officers will mean their London office of about 6,000 employees will ultimately be cut in half.

With more banks likely to follow suit, some experts are predicting a boom for Frankfurt’s real estate market.

“Now that Brexit has gained some clarity, companies will increasingly recalculate and review where in Germany there is sufficient available office space,” Michael Voigtländer of the Cologne Institute for Economic Research (IW) told the Frankfurter Allgemeine Zeitung on Wednesday.

“The demand for living space will also come along after the second half of the year… The demand for upmarket housing will increase and drive up prices.”

BNP Paribas Real Estate also said that Frankfurt presents stability for investors in a world which currently seems quite unstable.

And Deutsche Bank estimates that the price in square metres of a Frankfurt home will increase by 4 percent on average, or €125, if an additional 5,000 bankers look for housing.

 

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