DZ HYP examines the performance of top locations in new study “Real Estate Market Germany 2026”

• Retail sector stabilises, with prime rents in top locations holding up
• Requirements for office space continue to shift
• Good letting prospects for residential property
   

Earlier today, DZ HYP published its new research report “Real Estate Market Germany 2026”. The report examines developments in the office, retail and residential asset classes in Germany’s seven top locations: Berlin, Cologne, Dusseldorf, Frankfurt/Main, Hamburg, Munich and Stuttgart. It 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 a 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. The report also indicates increasing differences between and within the various asset classes. Residential property continues to benefit from the clear excess of demand over supply in the top locations. While the asset class offers the most robust prospects, office and retail properties are differentiated more according to location and property quality. 

Sabine Barthauer, DZ HYP’s CEO, summarised the results of the report: “The real estate market is currently shaped by structural change. Value development is being driven more and more by letting potential, meaning that location, sustainability and active management are set to take centre stage in future. While residential properties continue to offer good prospects, opportunities are arising in the office and retail sectors, especially where portfolios are being continually adapted to changing user requirements.”

Continue to the full press release