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Office market Q4 2025

In an environment that remains challenging, Germany’s office markets have matched the previous year’s result. Office take-up in Germany’s key markets - Berlin, Düsseldorf, Essen, Frankfurt, Hamburg, Cologne, Leipzig and Munich - amounted to 2.7 million square metres for the total year 2025, representing a slight increase of 1.4% compared with 2024. Market development was shaped above all by large, signal-setting deals at the beginning of the year and a marked rise in letting activity within the medium-sized segment, although not all markets were able to participate in these positive results. Companies are approaching decisions on offices more actively - often after a long analysis phase, but subsequently with swift implementation. The driving factor remains the “flight to quality”. For 2026, we anticipate a further moderate revival in leasing activity, especially if the filled decision pipelines result in more contracts in the second half of the year - particularly in the large-scale segment. Nonetheless, external factors, such as trade and geopolitical conflicts, may continue to cause short-term volatility.

Commercial investment market Q4 2025

The German commercial investment market remained stable overall in 2025, despite a continuing challenging environment. The total annual investment volume is recorded at just under €34 billion. This is slightly below the previous year's result by -3.5%, although performance varied significantly across asset classes, including a remarkable 19.5% increase in office transactions and an almost 29% rise in hotel investments. Towards the end of the year, the market gained further momentum: with €10.2 billion, the final quarter showed the most lively months of the year. The strong last chapter of the year demonstrates that, in many cases, the investment pipeline became ready for transaction and processes were more consistently brought to a deal. Key factors were more realistic price expectations and better predictability of financing. Overall, 2026 is likely to be characterised by a broader deal base, even though market participants are expected to continue acting with discipline in their calculations and risk assessments.

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 Q4 2025

The nationwide warehouse and logistics market achieved a take-up of almost 6.1 million sqm in 2025. This corresponds to a significant increase of almost 14% compared to the previous year. The logistics market is thus performing well in a weak economic environment and is showing a positive development over the course of the year. Nevertheless, the deviation from the ten-year average is 13%. Overall, more contracts were signed than in the previous year and, above all, a higher number of large-scale contracts were again recorded, which naturally have a strong impact on the overall result. The size category above 20,000 sqm increased by an impressive 30%. In this space segment, logistics service providers stand out in particular, accounting for almost half of the take-up in the segment of large contracts. This reflects the fact that many industries appreciate the flexibility of logistics service providers, especially in economically difficult times. In this context, it is also noteworthy that companies from the e-commerce sector are again much more active in the market, but often have their business handled by logistics service providers. The top logistics markets (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig and Munich) grew by 15% year-on-year and closed the year with a combined take-up of 2.2 million sqm. In the course of the year, the rent level has risen slightly in most locations, both at the peak and on average.

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 Q4 2025

In the fourth quarter of 2025, the German residential investment market continued its market recovery from the first half of the year with slightly increased momentum. In total, around €8.9 billion was invested in larger residential portfolios of 30 residential units or more in 2025. This was just short of the previous year's result (by 4%). Residential is thus the asset class with the highest investment volume in the German real estate market. The solid result for this market phase and the improved sentiment are reflected in the increased contribution of large-volume portfolios, including those from the value-add segment, as well as forward deals. In particular, the renewed demand for nationwide portfolios is driving the market recovery and shows that investors are increasingly realizing investment opportunities even outside the A-cities.

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.