Markets

“The higher interest rate level (…) does not necessarily mean worse business for the real estate industry, but different business models.”

Statement by Francesco Fedele, CEO of BF.direkt AG, on the current ECB key interest rate decision.

“There are many indications that long-term interest rates will rise rather than fall in the future.”

Prof. Dr. Steffen Sebastian, Chair of Real Estate Financing, IREBS Institute for Real Estate Economics, University of Regensburg on the ECB's key interest rate hike.

In my view, the ECB’s interest rate hike is above all a signal

According to Annika Steiner, the ECB's latest interest rate hike is above all a signal, not a return to the aggressive policy of 2022/2023. New construction and highly leveraged investments are suffering, while the user market remains largely stable.

“If you want affordable housing, you have to start with overregulation and the duration of the procedure.”

The Real Estate Arena real estate fair in Hanover, which started yesterday, ends today. Bastian Humbach, Managing Director of HAMBURG TEAM Projektentwicklung, provides you with a picture of the mood of the event for possible reporting below.

Savills: Improved material recycling reduces CO₂ footprint during demolition and subsequent new construction of office buildings

Savills is investigating how the reuse of building materials reduces the carbon footprint of demolition and subsequent new construction of office buildings. London, Amsterdam and Paris are in the lead, Berlin is in fifth place. Nevertheless, renovation usually remains the most effective measure.

“Düsseldorf: Increasing cash turnover on the private real estate market.”

Düsseldorf reports increasing cash turnover on the private real estate market. An overview shows the development of asking rents in EUR/m² (new construction and total) per Q4, based on data from empirica and Aengevelt Research.

Global HV switchgear market to expand rapidly through 2030, led by APAC, forecasts GlobalData

GlobalData forecasts strong growth for the global market for high-voltage switchgear until 2030, led by Asia-Pacific. The drivers are grid expansion, digitalization and SF6-free technologies. EMEA remains number two, America is growing solidly; OEMs are scaling capacity.

Global data center power consumption to rise threefold by 2030, forecasts GlobalData

GlobalData predicts that data center power consumption will triple by 2030 (CAGR 21.1% from 2024). China is likely to overtake the US by 2030; APAC is growing strongly. The drivers are cloud, AI, colocation and hyperscale expansion.

Interest Rate Cycles and Real Estate Markets – Evidence from Historical Time Series

How do geopolitical tensions, inflation and monetary policy affect capital markets and real estate investment? This question was addressed in the May issue of Macro Matters – Investment Insights entitled "Interest Rate Cycles and Real Estate Markets – Evidence from Historical Time Series".

Private markets offer financing solutions during periods of geopolitical transition

Collision in Share Deals: State Tax Law and the Protection of the Free Movement of Capital in the EU

An ECJ ruling of 4 June 2026 (C-837/24, Nova Iberomoldes) focuses on the economic reality of share deals. It could limit national real estate transfer taxes if there is no actual change of ownership. For Germany, there are conceivable effects.

Savills: European logistics leasing up 6% year-on-year, investors increasingly focus on stable earnings

Savills reports 6.6 million sqm of logistics lease across Europe in Q1 2026, +6% year-on-year; particularly active: Netherlands, UK, Belgium, Spain. Rents continue to rise (Prime Rent Index +1.3% q/q, +2.7% y/y). 2025: €43.3 billion; Q1 2026: €7.5 billion (-19.2%), focus on stable earnings.

Housing in Berlin: Why the market is not easing and what needs to happen now

AIV Berlin-Brandenburg warns of continued tension on the Berlin housing market. It is not a lack of housing, but distribution and structural problems that are decisive. Binding district targets, higher densities and the use of state-owned land are demanded.

MVDI publishes ImmoBench market report: Operating costs are becoming a key challenge for residential real estate

MVDI has published the ImmoBench Market Report 2025 together with Bauakademie Performance. In 2023, the median operating costs were €2.69/m²/month (€2.32 in the previous year), while heating costs increased by approx. 42%; Presentation on June 10 at the Real Estate Arena.

Global SMR capacity to surge nearly sixfold during 2025-30, forecasts GlobalData

GlobalData predicts that global SMR capacity will increase nearly sixfold from 2025 to 2030 and could increase to over a hundredfold by 2040 compared to 2025. Drivers are the need for low-CO2 base load, data centers and energy security; China and Russia lead, FOAK risks curb.

Savills: “Postponed instead of cancelled” – Weak 1st quarter on the global real estate investment market with a better outlook

The global real estate investment volume fell to USD 230 billion in Q1 2026 (−5% compared to Q4). Savills sees opportunities for revival thanks to a strong pipeline (+18% transactions in Q2 yoy), provided that there is a rapid de-escalation in the Middle East. In Germany, sales amounted to EUR 8.2 billion (−24%).

a.s.r. real assets publishes white paper on the polarisation of the Dutch office market

a.s.r. real assets publishes the third part of a research series on the polarised Dutch office market. The white paper sees opportunities for investors: Prime offices in urban locations benefit from ESG requirements and hybrid work. Quality and accessibility count.

JLL study: By 2030, many data centers will be built in Germany beyond the metropolises

A JLL report shows that Germany's data center market will grow strongly beyond the metropolises by 2030. Frankfurt remains in the lead, Berlin is growing the most; large-scale decentralised projects are being built in Hamm and Lübbenau, among other places. Market volume could rise to $12.84 billion; Energy is becoming a key factor.

Exploding operating costs of office properties – NEO OFFICE IMPACT REPORT provides benchmarks

BAUAKADEMIE forecasts a 17 percent increase in the operating costs of office properties by 2028. For the NEO OFFICE IMPACT REPORT, data will be collected until August 28, 2026, also from the tenant's point of view. Participants receive the report free of charge; Benchmarks count in certifications.

Residential investment market remains stable, but investors are becoming more cautious – tightening of tenancy law is the biggest risk

A nationwide survey by SCHICK IMMOBILIEN shows that the residential investment market will remain stable in 2026, but market participants will become more cautious (index: 50.4). According to 82%, the biggest risk is a tightening of tenancy law; Interest rates and inflation are becoming more important.

“Aengevelt: Every new apartment relieves the housing market.”

On the basis of several studies, Aengevelt confirms that every new-build apartment – even in the high-price segment – relieves strained housing markets via relocation chains. Depending on the type, up to 269 existing apartments become available for every 100 new buildings; low-income households will benefit in particular.

Housing Cost Atlas Germany: Home ownership is becoming a test of endurance – metropolises reach the affordability limit

Housing is becoming the central challenge: rents usually remain moderate, and property is often much more expensive. Especially in metropolises, costs often exceed the affordability limit, while rural regions remain more affordable.

Large electricity consumers: the threefold challenge of grid connection, flexibility, and bankability

De Gaulle Fleurance presents the 7th edition of the Energy Transitions Observatory. The report analyses the three challenges faced by large electricity consumers – grid connectivity, flexibility and affordability – and compares regulatory approaches in China, Europe, India, UAE, UK and Senegal.

U.S. Commercial Real Estate Cycle Monitor: 1Q26 – Recovery intact