Office real estate investment market grew significantly in the first half of 2026

Prime yields in the liquid core markets remained stable in the first half of the year, with upward pressure on yields. At the same time, the yield level differentiated more strongly according to location and property quality. Away from the prime segments, the market remained much more heterogeneous and the yield gap is widening. "Overall, advanced pricing shows that resilient valuation levels are being reached again," says Sandro Höselbarth, Head of Valuation & Advisory Services Germany at CBRE in Germany.

Within the top 7 locations, a differentiated picture emerged. Munich maintained its strong market position and was the highest-volume location in the first six months of this year. However, Berlin, which was still the undisputed leader in the same period last year, lost relative dominance in the first half of 2026, contributing to a more stable and less concentrated market structure within the major office markets. Düsseldorf and Hamburg gained significant momentum due to individual major deals and expanded their market shares. Frankfurt also recorded a noticeable upturn.

At the same time, the segment outside the top 7 developed at an above-average pace. Activity in B locations and regional centers increased significantly. The recovery was thus placed on a broader regional basis. The B locations benefited in particular from an increasing willingness to take risks on the part of investors and individual large-volume deals. They increasingly developed into a supplementary playing field for opportunistic strategies. At the same time, they played an important role in market liquidity, as they offered additional investment opportunities outside the core markets.

The buyer structure also differed in some cases from the overall market. Institutional investors became more involved, while the public sector also played a more prominent role. Overall, the regional markets became more of a focus for different investor groups who specifically focused on diversification and return opportunities.

"The gradual recovery in market activity is expected to continue for the remainder of the year. While the top 7 continue to function as stable core markets, B locations and regional centers are developing into an important supplementary segment. The pipeline remains well filled, but at the same time decision-making processes are likely to remain demanding and time-consuming. For the year as a whole, a volume at the previous year's level can therefore be expected, especially since larger deals in particular could well be delayed until next year," says Lemli.

"With regard to the yield development, a uniform movement cannot be assumed. In very good locations and in modern, well-let properties, yields are likely to remain largely stable. In contrast, there are signs of further upward pressure in the case of less liquid products, weaker property quality or increased rental risk," says Höselbarth.