In the report “Real Estate Market Germany 2026” DZ HYP examines developments in the office, retail and residential asset classes in Germany’s seven top locations: Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart. The report also assesses the fundamental market outlook in times of ground-breaking changes to society, the economy and the environment.
The report describes a real estate market that has stabilised three years after the sharp rise in interest rates but is now operating within very different parameters. Valuations recovered slightly, especially for multi-family homes. At the same time, investment activity has not yet picked up sustainably. This can be attributed to the weak economy, more attractive capital market yields, a structural decline in demand for space and the necessary – but cost-intensive – decarbonisation of existing properties. In the top locations there are increasing differences between and within the various asset classes, the report indicates. Residential property continues to benefit from the clear excess of demand over supply. While the asset class offers the most robust prospects, office and retail properties are differentiated more according to location and property quality.
The study “Real Estate Market Germany 2026” is available for download on the top left of this page.