Quality as the deciding factor? DZ HYP Study highlights new demands on real estate

• Regional centers with moderate vacancy compared to top locations
• Prime rents for modern office space continue to rise
• The decline in rents for downtown retail is slowing down

DZ HYP has published its latest study, “Regional real estate center in Germany 2026|2027.” The study analyzes the development of the office and retail segments in twelve regional centers and compares them with the seven prime locations. The results confirm a challenging environment for the real estate markets. At the same time, the industry is adapting to changing space requirements where it makes economic sense, for example, by repurposing existing properties.

Despite the challenges in the investment market, interest in modern office space and downtown retail space remains high. In the office sector, rents for modern, centrally located spaces are rising rapidly, while the decline in rents for retail space in city centers has continued to slow.

Sabine Barthauer, CEO of DZ HYP, comments: “We are observing an increasingly individualized development of real estate locations in Germany. Some are benefiting from favorable conditions and stable demand, while others face greater challenges and must engage more intensively with alternative concepts. For investors and financiers, it is therefore more important than ever to have a precise understanding of location profiles and to selectively capitalize on opportunities.”