Real Estate Market Report Germany Q1 2026

Following the adjustment processes of the previous year, the German real estate market is increasingly solidifying at the beginning of 2026. Despite macroeconomic uncertainties and volatile financing costs, several segments are stabilising – opening up new opportunities for selective investments.

In the residential market, core and core-plus products remain in demand, supported by sustained demand in the top seven cities. The office leasing market is proving more robust than expected: high-quality space in central locations remains scarce and prime rents are holding their level. In parallel, legislative initiatives such as the “Bauturbo” and the “Einfach-Bauen-Gesetz” are injecting new momentum into the new-build sector.

An additional growth area is emerging in defence properties – assets with security- and technology‑related uses that offer long-term stability and attractive return potential.

Which segments are benefiting most from the market adjustment?
What role are interest rates playing in the realignment of strategies?
And where do the biggest opportunities lie in the current year?

These and further insights can be found in the full Germany Real Estate Market Report Q1 2026.

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