DZ HYP publishes study “Regional Real Estate Markets 2022”
14.03.2022
As one of the leading real estate banks in Germany, we regularly analyse the markets we actively cover. However, especially in regional locations outside the seven largest cities, market data is not readily available. With our studies, we intend to create more transparency and therefore publish a report each spring, to better assess trends and risks in these markets. For this purpose, we investigate developments in the office and retail property segments for the twelve regional centres of Germany – Augsburg, Bremen, Darmstadt, Dresden, Essen, Hanover, Karlsruhe, Leipzig, Mannheim, Mainz, Munster and Nuremberg, comparing them to Germany’s top seven locations.
The German real estate markets have basically been little affected by the COVID-19 pandemic. However, this does not apply equally to all asset classes. The past year has shown that strong demand for office properties is intact, but the specifics have changed: communication and teamwork is now in the focus, which is why newly designed and inviting spaces are now top priority, but are less available. Office rents, which were already high in some areas, have therefore risen further, whilst vacancy rates (which are still low) have increased. In the retail sector, however, the pandemic has worsened the market environment. At all locations analysed, top rents fell last year, albeit with differing intensity. Retail properties for local supply continue to be sought after, whereas the situation has been deteriorating for inner-city retail and shopping centres.
This report on "Regional Real Estate Markets 2022" – the thirteenth in this series – supplements "The German Real Estate Market" – our series of specialist publications published in the autumn of each year.
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