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Office market Q1 2026

The German office markets have entered the new year in a generally moderate manner. In Germany’s key office markets - Berlin, Düsseldorf, Essen, Frankfurt, Hamburg, Cologne, Leipzig, and Munich - office take-up in the first quarter of 2026 amounted to 603,000 m², representing a decrease of 14% compared to the previous year. Overall, the markets were supported by lively letting activity in the smaller space segment and a better momentum regarding medium-sized deals. Individual locations exceeded both the previous year’s level and the five-year average whenever major contracts were successfully concluded and significantly more dynamic was observed in deals ranging from 5,000 to 10,000 m². Berlin and Munich made strong contributions in an ongoing challenging market environment, with volume increases of 42% and nearly 26%, respectively. Although a rapid broad-based recovery is not yet foreseeable for the rest of the year, there is likely to be increasing momentum in sought-after segments, accompanied by sustained high rental pressure in the top sectors. Against this background, Germany’s most important office markets are heading for a stable and possibly even more robust year in terms of take-up compared to 2025.

Commercial investment market Q1 2026

On the commercial investment market, approximately €6.9 billion was recorded in the first quarter of 2026, representing a significant increase of around 16%. The highest number of transactions since 2022 (nearly 390 deals) demonstrates that the market is once again seeing more investment activity across the board. The ongoing conflict in the Middle East, with its potential implications for energy supply, inflation, interest rates, and consequently financing, is naturally not yet fully reflected in the current figures. It is also encouraging that, even after the escalation of the conflict in March, a number of investment approaches were successfully completed. Nevertheless, the conditions for investment decisions have once again shifted in recent weeks due to the persistently uncertain geopolitical environment: The economic tailwind anticipated at the beginning of the year is likely to be much weaker than hoped. Accordingly, the strained outlook could reverse the momentum at any time, but overall, we expect transaction activity to pick up as the year progresses. Supporting this, the German occupier markets, which have demonstrated their resilience in recent years, do not currently show signs of renewed profound structural changes in demand behaviour.

The share of certified green buildings within the commercial investment volume (excluding portfolios) remains at a very high level, even in a challenging market environment. After the top figure of just under 31% in 2022, around 27% was achieved in 2023. This is the second-highest share in the last 10 years and confirms the importance of green investments. While the EU Taxonomy mainly concerned companies in the real estate sector that wanted to place funds on the capital market, it is now affecting more and more market participants. Accordingly, sustainability regulations are becoming increasingly important for investors and buyers across the board, while at the same time occupiers (tenants and leaseholders) must now also take taxonomy criteria into account in their corporate governance. Against this backdrop, proactive management will remain the order of the day in 2024.

Logistics market Q1 2026

The nationwide warehouse and logistics market has made an excellent start to 2026. With take-up of 1.5 million sqm, it not only exceeded the previous year's result by an impressive +30%, but also exceeded the ten-year average by +3%. Particularly against the backdrop of the geopolitical and economic conditions, this is a very pleasing result that builds on the continuous market recovery of the previous year. In the 1st quarter of 2026, the trends already observed last year continue. The number of contracts recorded was markedly higher than in any year since 2022, and significantly more large-scale contracts were concluded again. The segment of contracts above 20,000 m² alone grew by an impressive 69 % compared with the previous year. Overall, and especially in the case of large-scale contracts, logistics service providers are the strongest demand group. This often includes, among other things, orders from the e-commerce sector that logistics service providers commission to handle their business. The top logistics markets (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig and Munich) achieved a combined take-up of 632,000 sqm, which corresponds to an increase of 25% compared to the previous year and is well above the average (+12%).

Retail market Q4 2025

The driving factors in the brick-and-mortar retail market once again created a mixed sentiment throughout 2025. On the one hand, the 4% decline in fashion sales in offline retail reflects the subdued consumer mood and increased tendency to save money regarding the still uncertain geopolitical and economic environment (source: Textilwirtschaft). On the other hand, footfall data analysed by BNP Paribas Real Estate and collected from the platform Hystreet.com highlights that this development cannot be attributed to a significantly lower level of footfall in city centers: In 2025, the number of people counted in prime locations remained stable, with a slightly positive trend observed toward the end of the year (November and December: +1.5%; December alone: +5%). Meanwhile, in the tension between good footfall and the often unsatisfactory conversion of potential in stores and at the checkout, a very dynamic market situation emerged in letting activities in inner-city locations, achieving the second-highest take-up volume since 2019.

Residential Dashboard Q1 2026

The German residential investment market made a solid start to 2026. In the first three months of the year, almost €2.0 bn was invested in larger residential portfolios of 30 residential units or more. However, the improvement in investor sentiment observed over several quarters has not yet been reflected in a noticeable recovery in transaction volumes. Compared with the strong first quarter of the previous year, residential investment volume declined by 22 %. That prior-year result was driven by several large-scale portfolio transactions, whereas the current quarter saw a noticeably higher number of transactions. In particular, there was a lack of large, nationwide portfolio deals.

Residential rental & purchase price navigator

The residential markets of the most popular metropolises in Germany have been dominated by rising rental and purchase prices for years. But what is the situation in the rest of the country? BNPPRE investigated this question and analyzed all 108 independent cities in Germany. With the BNPPRE Residential Navigator, which is updated every six months, you can make further progress through the numerous residential markets and keep an eye on rental and purchase price developments (for condominiums) in the new builds and existing stock as well as other key figures.

District Dashbboards

Find out more about current (rent) prices in Berlin, Frankfurt, Hamburg and Munich and the price trend at a district level in our new District Dashboards. Click here for detailed rent and price comparisons:

Hotel Dashboard Q4 2025

The hotel investment market can report the highest increase in investment volume compared to 2024 in an asset class comparison: The overall balance was over €1.8 billion, a remarkable 29% higher than in the previous year. It is also pleasing that the volume achieved was roughly back to the level of 2022 (just under €1.9 billion), in which the interest rate policy measures had not yet reflected to that extend in investment turnover.
The fact that both the larger and smaller city categories were able to benefit from the market revival underlines how diverse the market is at the moment: With major transactions such as the Mandarin Oriental in Munich, the Motel One Köln-Messe and the Steigenberger Hotel am Kanzleramt in Berlin, several hotel transactions with a signal effect were observed. At the same time, however, around two-thirds of the registered sales in the individual deal segment were in cities outside the A-locations, which underlines the overall broad-based demand impulses.

BNPPRE Tourism analyser

On the German hotel market, all key performance data indicates a sustainable recovery in tourism in Germany after the challenging COVID-19 years of 2020 and 2021. Significant increases in overnight stays by guests in accommodation establishments were already evident in 2022 (+49%) and 2023 (+61%). In 2024 around 496 million overnight stays were recorded, which not only exceeds the pre-COVID-19 figure from 2019, but also represents a new record in a long-term comparison. This reflects the resurgence in demand from city and business tourism as well as guests from abroad. Compared to the previous year, the number of overnight stays by foreign guests rose by a good 5% (85 million guests in 2024). Other key figures such as room occupancy and average prices also developed positively. By 2024, the occupancy rate had returned to a high level of just under 67% nationwide. The top 5 most popular travel destinations in 2024 are Berlin (31 million guests), Munich (20 million guests), the Baltic Sea (19 million guests), Hamburg (16 million guests) and the Main/Taunus region with 15 million guests. Furthermore, 52 million overnight stays were already registered between January and February 2025 - a strong signal for a continued positive trend in the current year.