Sentiment in the property sector has improved compared with last year, although a broad market recovery is not yet in sight. The current sentiment index stands at -0.14, which is significantly higher than last year’s figure of -0.41. For the coming six to twelve months, respondents expect only a slight improvement, with an index value of 0.14. The long-term outlook for the next five years is considerably more positive, at 0.98. Last year, this figure stood at 0.88. These are the key findings of the 2026 Sentiment Survey, which RUECKERCONSULT conducted on behalf of HIH Invest and the Ypsilon Group amongst market players in the property sector.
Sentiment improves, market remains selective
Current sentiment has improved year-on-year in almost all market sectors surveyed. The exception is institutional investors and family offices, who assess current market conditions as slightly worse than in the previous year. Property and facility managers are particularly positive about their current business situation: their sentiment score has risen from 0.75 last year to 2.00. At the other end of the scale are project developers, with a score of -0.76. The current business situation is also viewed predominantly negatively in the areas of property transactions and financing.
Alexander Eggert, Managing Director of HIH Invest, comments: “The long-term confidence of those surveyed shows that they continue to believe in the prospects for property. However, current market activity is driven primarily by specific investment opportunities; a widespread recovery is not yet evident. Where purchase prices, sustainable rental income and financing align, market participants are seizing the opportunities that arise. The trend in long-term capital market interest rates remains crucial here, as it shapes both financing costs and investors’ yield requirements. Investments must therefore remain viable even without the expectation of significantly falling interest rates. The improved sentiment is a positive sign, but a broader recovery requires greater planning certainty regarding interest rates and economic development.”
Ulrich Creydt, tax adviser and managing director of the Ypsilon Group, says: “The slight improvement in sentiment must not obscure the fact that market players continue to face considerable challenges. In particular, the negative assessment of financing, transactions and project development demonstrates that the recovery has not yet taken hold across the board. At the same time, however, confidence appears to be growing that the broader conditions are gradually normalising. The sector has adapted to the changed market environment and is looking ahead with renewed optimism, even if the path back to greater market dynamism will still take some time.”
Office property: investment and lettings markets remain tight
Caution is most evident in the office segment. 62 per cent of respondents expect demand for office space to fall over the next twelve months, with a further eight per cent anticipating a sharp decline. Only six per cent expect demand to rise. Sentiment in the investment market has also deteriorated compared with the previous year: 51 per cent forecast a decline in investor demand, and 14 per cent a sharp decline. In 2025, only 42 per cent overall had anticipated a decline in demand.
The picture is more positive when it comes to rent trends. Whilst half of those surveyed expect office rents to fall, 32 per cent anticipate stable rents and 18 per cent expect them to rise. Compared with the previous year, rent forecasts have therefore improved slightly. In contrast, downward pressure on purchase prices persists: 73 per cent anticipate further price falls. 42 per cent expect a fall of five per cent, whilst ten per cent even anticipate a decline of more than ten per cent. At the same time, investment opportunities are heavily concentrated in the top markets: 78 per cent of respondents see opportunities for office investments primarily in A-class cities.
Felix Meyen, Managing Director of HIH Invest, says: “The office market remains under pressure. Weaker demand for space and investor caution are making stabilisation difficult, particularly for older properties and in outlying locations. Modern, ESG-compliant properties in very good locations have better letting prospects, but are also dependent on economic developments. Even for high-quality properties, the purchase price, financing costs and sustainably achievable rents must be in balance. Further price adjustments cannot therefore be ruled out.”
Residential: Rental market remains tight, investors are sounding out the market
High tenant demand for residential property continues. 64 per cent of respondents expect demand for rental flats to rise, whilst a further 22 per cent expect it to rise sharply. Expectations regarding rent trends are correspondingly clear: 93 per cent anticipate rising residential rents. The vast majority expect an increase of five per cent. Compared with 2025, expectations have even shifted slightly towards stronger rent increases.
In the investment market, the picture is more cautious. Whilst 48 per cent still anticipate increased investor demand for residential property, this figure stood at 67 per cent in the previous year. At the same time, the proportion of respondents expecting demand to remain constant has risen from 20 to 32 per cent. Expectations regarding the purchase prices of multi-family and let-out properties have also moderated: 48 per cent expect prices to rise, 39 per cent expect them to remain stable, and 13 per cent expect them to fall. In the previous year, 61 per cent had expected a moderate price rise of five per cent; in 2026, the figure stands at 37 per cent.
Ulrich Creydt, Managing Director of the Ypsilon Group, says: “Two trends are converging in the residential sector. On the tenant side, excess demand remains high and is putting further pressure on rents. On the investment side, however, market participants are acting more cautiously. This is not a contradiction: investors recognise the strong fundamentals, but at the same time must take into account financing costs, regulatory requirements and investments in the property portfolio. Added to this are the planned changes to tenancy law, which, amongst other things, aim to cap index-linked rent increases. Purchase prices and business plans are therefore being calculated in a more nuanced manner.”
Logistics: positive signals from the lettings market
Expectations for logistics property are comparatively positive. 48 per cent of respondents anticipate rising demand for space, with a further five per cent expecting a sharp rise. Only six per cent expect a decline. The picture has thus improved compared with 2025: at that time, 15 per cent had still anticipated falling demand.
Confidence also prevails when it comes to rents. 49 per cent expect logistics rents to rise, 40 per cent expect them to remain stable, and just 11 per cent expect a decline. Expectations have improved compared with the previous year. In the investment market, however, stabilisation still prevails: 49 per cent expect investor demand to remain constant, 36 per cent expect it to rise and nine per cent expect it to fall. As regards purchase prices, just under half expect no change, whilst a good third anticipate rising prices.
Felix Meyen says: “The outlook for logistics property in the survey is comparatively favourable. However, this does not yet indicate a broad-based market recovery. The extent of any additional demand for space and the rents that can be achieved depend largely on economic developments and companies’ investment decisions. On the investment side, uncertainty over future interest rate trends and differing price expectations are hampering a recovery. The specific quality of the location, the creditworthiness of tenants and realistic assumptions regarding subsequent lettings remain crucial.”
Investment opportunities vary significantly by location and property type
The survey also shows that investors assess opportunities differently depending on the asset class and location. In the residential sector, A and B cities are almost neck and neck at 43 per cent and 49 per cent respectively. Office investments, by contrast, are clearly concentrated in A cities, accounting for 78 per cent. For industrial and corporate properties, as well as logistics, the greatest opportunities are attributed to B cities: this city category accounts for 58 per cent and 42 per cent of mentions respectively.
“The survey shows in which sub-markets investors see opportunities. Whether this actually results in transactions, however, depends largely on prices and financing terms. It is therefore difficult to make a blanket assessment based on property type or city category. Even in markets with fundamentally strong demand, yields must sustain financing costs and investment requirements in the long term. A long investment horizon alone does not compensate for an excessively high entry price. We therefore scrutinise investments carefully and factor in longer marketing periods as well as additional capital requirements,” says Carsten Demmler, Managing Director of HIH Invest.
About the survey
