Since the Brexit Referendum, companies including Morgan Stanley, Citigroup, Standard Chartered and Nomura Holdings have picked Frankfurt for their EU headquarters, but this continuing exodus may lead to rising rents for local residents.
Since 2006, rents in the city have risen by almost 50% as developers struggle to keep up with demand. Now data compiled by ASAP Business Partner JLL shows that Brexit-related demand for housing could lift rents by a further 3%, based on 8,000 people relocating there in a single year and renting rather than buying.
JLL’s report states that 6,000 new homes will be required by the city every year, and many futuristic high-rise tower projects are planned. Financial workers are not necessarily going to bring their families at first, so there is a need for smaller flats and houses, while Frankfurt’s serviced apartment operator City-Residence has received 15% more inquiries this year for homes that can be leased for months or even years.