Markets

Retail leasing once again delivers top take-up at the end of the first half of the year

German city centres are in demand as rarely in recent years, retail concepts are expansive, and so the real estate market for retail space has followed an extraordinary start to the year with another strong quarter.

Review Webinar Series “Macro Matters – The KINGSTONE Real Estate View” (June 2025)

Berlin real estate investment market: While outlook brightens, transaction volume remains low

According to Savills, in the 1st half of 2025, around 2.1 billion euros were turned over on the Berlin real estate investment market. Compared to the same period last year, this corresponds to a decrease of 43%.

Düsseldorf real estate investment market: While investors remain selective, sellers are increasingly realistic about achievable prices

According to Savills, around 414 million euros were turned over in the Düsseldorf real estate investment market in the 1st half of 2025. Compared to the same period last year, this corresponds to a decrease of 48%. Compared to the 10-year average, sales were 65% lower.

Frankfurt real estate investment market: Significantly more sales processes, especially in secondary locations

According to Savills, around 248 million euros were turned over on the Frankfurt real estate investment market in the 1st half of 2025. Compared to the same period last year, this corresponds to a decrease of 58%.

Munich real estate investment market: Private capital takes advantage of increasing willingness of institutional investors to sell for countercyclical purchases

According to Savills, around 980 million euros were turned over in the Munich real estate investment market in the 1st half of 2025. Compared to the same period last year, this corresponds to a decline of 27%. Compared to the 10-year average, sales were even 54% lower.

Hamburg real estate investment market: Increasing transaction activity and intensified competition for core-plus and value-add properties

According to Savills, around 891 million euros were turned over on the Hamburg real estate investment market in the 1st half of 2025. Compared to the same period of the previous year, this corresponds to an increase of 17%. Compared to the 10-year average, sales were 56% lower.

Cologne real estate investment market: Higher supply and more realistic price expectations promise rising transaction volume

Office leasing market in Frankfurt Q2-2025: High market activity – strong demand for modern space

In the first half of 2025, the office letting market in Frankfurt recorded take-up of 340,100 m². This was 93.9% higher than in the first half of 2024. Compared to the 10-year average of the 1st half of the year, sales increased by 73%.

Office rental market in Düsseldorf Q2-2025: Rising vacancy rates increase pressure on landlords

In the first half of 2025, take-up on the Düsseldorf office letting market was around 98,700 m². This was a decrease of 11.3% compared with the same period a year earlier. Compared to the ten-year average, sales were around a third lower.

Office letting market in Hamburg Q2-2025: Premium space in central locations remains scarce

In the first half of 2025, take-up in Hamburg's office letting market amounted to 207,000 m². Compared to the same period last year, this corresponds to an increase of 9.8%. In contrast to the ten-year average, however, it was about 15% lower.

Office leasing market in Cologne Q2-2025: Cologne office leasing market loses momentum in the second quarter

In the first half of 2025, the office letting market in Cologne achieved take-up of around 115,600 m², which corresponds to an increase of 73.8% compared to the first half of 2024. Despite the significant growth, sales were still about 17% below the ten-year average.

Office letting market in Munich Q2-2025: Highest vacancy rate since 2010, prime rents nevertheless stable

In the first half of 2025, take-up of 286,500 m² was registered on the Munich office letting market. This was 10.4% higher than in the same period of the previous year.

Office letting market in Berlin Q2-2025: Take-up remains subdued – Increased demand in individual sub-markets provides impetus

In the first half of 2025, take-up on the Berlin office letting market amounted to 248,000 m². This represents a decrease of 17.2% compared to the same period last year.

Many small and medium-sized transactions in Dusseldorf

With 19 transactions, the trend on the Düsseldorf real estate investment market is again pointing more clearly upwards. So many sales have not been registered in the NRW state capital since Q1 2022.

Hotel investment market continues to pick up speed – number of major transactions rises

The German hotel investment market has clearly picked up speed in recent months. After two very stable quarters in the 2nd half of 2024, each with over €400 million, the market had made a comparatively weak start to 2025 due to a lack of product surplus.

Healthcare investment volume significantly above previous year and slightly below average

The transaction volume on the healthcare investment market amounted to € 943 million after the first six months. Although the result is around 18% below the long-term average, the half-year result from the previous year was significantly exceeded by 66%.

Retail investments at the top of the asset class ranking due to Porta takeover

The retail investment market recorded a transaction volume of just over €2.86 billion in the middle of the year, putting it ahead of logistics assets (€2.78 million) and office properties (€2.67 million) by a razor-thin margin of the top three property types.

German investment market for healthcare and social real estate: Medical centres, medical centres and educational properties are moving into the focus of investors

According to Savills, the transaction volume in healthcare and social real estate in the 1st half of the current year amounted to just under EUR 920 million, an increase of more than 130% compared to the first half of the previous year.

Logistics investment volume slightly below previous year’s level

The logistics investment market generated a volume of €2.8 billion in the first half of the year, slightly below the previous year's level (-2.2%). Overall, the market is very lively with a very significant increase in the number of deals.

Top 6 office markets: Office space take-up recovers, but remains below the long-term average

In the first half of 2025, the top 6 office markets* recorded take-up of around 1.3 million m², 17.8% above the level of the same period last year - but a decrease of 9.1% compared to the average of the past ten years.

German investment market for office properties: While willingness to sell is increasing, institutional investors remain cautious

According to Savills, the transaction volume with office properties in the 1st half of the current year amounted to just under EUR 1.9 billion, which corresponds to a decline of around one third compared to the 1st half of the previous year.

Construction industry as a problem child of the German economy – times without a turnaround?

Our junior analyst Amelie Feye has analysed the current situation in the German construction industry. The focus is on economic development, structural stress factors and political measures to stabilise residential construction.

Data center market grows somewhat slower despite large pipeline

Although the demand for technologies such as 5G, cloud services and, above all, artificial intelligence (AI) is enormous, limiting factors are causing slightly weaker growth.