BNP Paribas Real Estate publishes market figures for Q4 2025
The transaction volume in 2025 will only reach € 770 million, which has more than halved the already moderate result of the previous year (-53%). A comparably weak investment turnover was only registered in the Main metropolis in 2009, i.e. immediately after the financial crisis. The sobering result is mainly due to the lack of major deals, a number of which are in the sales process but could not be finalized last year. In the small and medium-sized market segments, on the other hand, there was definitely a lively and slightly increasing demand. This is the result of the analysis by BNP Paribas Real Estate.
In a nationwide comparison, Frankfurt occupies an unusual position and only ranks sixth in a comparison of the investment volumes of the A-locations. Currently, the gap to the top performers – Berlin (€3.2 billion), Munich (€2.6 billion) and Hamburg (€1.9 billion) – is disproportionately large. “With the first large-volume transactions, especially in the office segment, Frankfurt will catch up with the strongest locations at the moment, albeit with a time lag, but then quickly,” explains Riza Demirci, Managing Director and Frankfurt Branch Manager of BNP Paribas Real Estate GmbH.
There are different trends in prime yields. While they remain stable for offices (4.50%) and premium commercial buildings in prime locations (3.75%), they have risen by 25 basis points to 4.50% in the logistics segment over the course of the year.
No major deal over €100 million, office investments with a smaller share than usual
In 2025, not a single deal in the three-digit million range could be recorded, and even the second-largest market segment between €50 million and €100 million accounted for just over 15% of sales. Against this background, it is not surprising that total sales were significantly underestimated. If, on the other hand, one looks at the market segments up to € 50 million, a revival could certainly be observed, which is reflected in an absolute increase in sales. The result of 2023 was also exceeded in these size classes.
In terms of asset classes, office buildings account for a comparatively low share of only 40% for Frankfurt. On a long-term average, they are responsible for around two-thirds of the investment volume. This shows that the usually dominant market segment of large-volume office investments almost completely failed in 2025. In contrast, logistics properties contributed a disproportionately high share of sales at almost 22%. The other category of just under 31% mainly includes development plots and redevelopment projects.
Together with the volume of logistics, these development projects are responsible for the fact that more than 43% of total sales were made in the periphery, whereas the contribution of the central locations was significantly lower than usual.
Most extensive pipeline of all major locations, significantly higher investment turnover foreseeable
The prospects of the Frankfurt investment market are comparable to those of the other major German investment locations in terms of the basic framework conditions. Global uncertainties and a German economy that is slow to pick up speed form an environment that points to a gradual recovery rather than a very rapid increase in sales. However, there is one special feature in the Main metropolis and that is the bulging pipeline with large-volume sales properties that are already in concrete and sometimes advanced stages of negotiations. Examples of this are the well-known office properties Opernturm, Westend Duo, Trianon and the Wave.
The Frankfurt investment market, which is traditionally driven by office transactions, is being boosted by the strong office letting market, which not only achieved an above-average result at 611,000 m², but also registered the highest number of contracts concluded in a nationwide comparison with more than 10,000 m². The excess demand in the premium space segment will consolidate and consequently ensure sustainable and, above all, extensive rental price growth.
“The dynamics of the user market suggest that Frankfurt will achieve a significant increase in transaction volume in 2026 and will once again place itself in the first row of the most important investment cities,” predicts Riza Demirci.
