Cities That Work: London, Stockholm, Berlin

According to Allianz Real Estate, Berlin is the highest-ranked German city, rated above Munich and Frankfurt. The most globally connected city in Germany with a rich history and world-class cultural offerings, Berlin has used its open values and accessibility to attract international talent and cultivate a growing tech sector - ranking third for market balance, technology & connectivity, and global city status.

The city's multiculturalism, with more than 800,000 of the 3.7 million residents possessing a foreign passport has also fueled its universities, which have, in turn, bolstered a booming startup scene that has produced eight tech unicorns.

Berlin's office vacancy rate remains one of the lowest in Europe, due in part to the city being also almost twice as dense as other major German cities. Forecasted rental growth and risk-adjusted returns remain both above average.

Despite the impact of the pandemic, Allianz Real Estate has continued to invest in the European office sector both through direct equity acquisitions and financing. Key deals over the past 12 months include the EUR 1.4 billion forward purchase of FOUR Tower 1 in Frankfurt, and the first equity office investment in London. On the financing side, the company has continued to strengthen its pan-European loan book with major office lending transactions in Paris, Amsterdam, and London.

If you wish to take a deep dive into top-ranked cities or find out more about Allianz Real Estate's metrics, you can find the whole report here.