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Strong economic growth has led to an upturn in the German property market, says Scottish Widows Investment Partnership. It says strong exports and sweeping structural changes have led to growth in the service sector, providing a much needed fillip for the office market. Frankfurt delivered the strongest total returns in the German office sector last year at 32 per cent. Swip says this 18-year high was accompanied by positive rental growth while office take-up rose by 14 per cent as a result of the city's growing business and financial sector. It expects Hamburg to lead the office sector in the next five years, with predicted returns of 9 per cent a year, while Cologne is predicted to join the list of 'powerhouse' cities such as Berlin, Munich and Dusseldorf. Head of international property Robert Matthews says: "In terms of property markets, Germany does not have a single dominant city. Instead, the federal structure provides a range of centres each with their opportunities for property investors. "Our forecasts point towards a steady growth in Hamburg over the next few years, where economic indicators and increased demand for office property bode well for future growth."