In 2026, the German real estate industry faces a year of opportunities in an early-cycle environment, according to Colliers’ latest report German Real Estate Market Outlook 2026.
The economy is slowly recovering, and the property market shows initial signs of stabilization. In this phase, private and international investors dominate transactions, while institutional investors act selectively. Prime rents continue to rise in several sectors, new construction activity declines across almost all sectors, and office vacancy rates in the top 7 cities reach a new peak. At the same time, growth segments such as residential, industrial & logistics, hotels, and specialized sectors like life sciences and data centers gain importance
“The German real estate industry is undergoing a phase of reorganization – shaped by geopolitical tensions, higher financing costs, and demanding regulatory frameworks. At the same time, the early-cycle market phase offers diverse
