Germany, along with other European Union (EU) states including Ireland and France, have launched repeated charm offensives in an attempt to secure UK-based business after Brexit.
However new figures released by rating agency Scope has revealed a sharp increase in office rental prices in Germany – something which could stop fleeing businesses in their track.
Berlin in particular has seen prices sky-rocket to among the highest in Europe, with the pattern set to continue throughout the Brexit process and beyond.
The annual rental growth is expected to rise by 4.4 per cent over the next give year, Scopes announced today.
They revealed London, on the other hand, is set to experience a rental growth of just 0.7 per cent.
Scope blamed Brexit for the impact on London, claiming: “The uncertainty about Brexit and its impact on the London financial sector is one reason for the low rent price forecast.”
They did admit Frankfurt, a city previously expected to benefit from Brexit, however, was not showing the levels of growth expected.
They said: “The Frankfurt office real estate market, which is often named as a big winner of Brexit, was not able to improve compared the previous year’s forecast.”
The price hike comes amid a huge effort from EU states to lure financial services away from London.
Along with Germany, France and Ireland have not disguised their attempts as the Brexit process continues.
In March, French officials flew to London for high-profile meetings with some of the finance industry’s heavy hitters.
Othman Nasrou, vice president of the Ile de France region, said he was meeting with “a few financial institutions” during the two-day flying visit.
A spokesman for his office said he would “present all the opportunities and assets, the offerings and the reasons to choose Paris Region” as a new EU home base after Brexit.
Paris is so confident on securing business from UK-based firms it is fast-tracking plans to build seven new skyscrapers in the city, with the business district already capable of taking in 20,000 new workers.
The Republic of Ireland, too, has carried out its own charm offensive for British business, lauding itself as the soon-to-be sole English-speaking EU state.
Earlier this year, Eoghan Murphy, the Minister of State for Financial Services, visited London to tout the Irish capital as the “location of choice” for financial services.
He said: “Given the European Banking Authority’s crucial role across Europe, we must ask ourselves what would be the least disruptive, and therefore safest place, to move the EBA to?
“We have to prioritise minimising disruption of the banking supervision regime in Europe. In my view that puts Dublin at the front of the queue.
“So we’re going to be very ambitious for this project.”
With additional reporting from Monika Pallenberg.