Colliers is launching "Growth Cities Germany", a new research initiative on the growing importance of B and C cities in the German real estate market. The series highlights a selected German B or C city on a monthly basis and highlights its investment potential, market dynamics and perspectives.
Compared to other European countries, Germany has a unique selling point: While there are only a few established investment locations outside the metropolises in other countries, the German market is characterised by a large number of strong regional centres. These cities combine stable occupier and rental markets with long-term growth potential. The high demand for these locations is also reflected in the transaction activity: In the course of 2025 so far, around 10.5 billion euros have been invested in commercial real estate in the regional cities, compared to around 7 billion euros in the top 7. This means that around 60 percent of the volume in the commercial sector is accounted for by cities outside the top 7. On a 5-year average, the regional markets are also slightly ahead at 52 percent.
The aim of the series is to highlight the increasing importance and attractiveness of regional growth markets – especially in an environment where risk-adjusted returns are increasingly coming into focus. In the future, Colliers will regularly use the series to highlight individual regional locations with growth potential. Leipzig kicks things off. With around 4 million square meters of office space, a vacancy rate of only 4.7 percent and a clear demand perspective, the city is one of the most dynamic regional markets in Germany.
Manuel Backfisch, Managing Director at Colliers and Head of Capital Markets – B&C Cities Germany, comments: "We are seeing that investors are increasingly focusing on regional, high-growth locations outside the top 7 cities. Our 'Growth Cities Germany' series shows where stable demand, low vacancy rates and real return potential are combined. Now is the right time to selectively channel capital into these markets – for both institutional and retail investors with 'buy and hold' strategies. With Germany's largest specialized investment team and our international network, we are building the bridge between regional markets and global capital."
Francesca Boucard, Head of Market Intelligence & Foresight at Colliers in Germany, says: "B and C cities currently offer an attractive risk-return profile. Limited new construction, stable demand and relatively low volatility make these markets interesting for institutional and private investors. With the new series, we are creating more market transparency and showing key indicators – from vacancy rates to rent dynamics and construction activity."
Colliers' B&C Cities team is represented in Germany by twelve experts in all major investment locations outside the top 7 cities. In North Rhine-Westphalia, this includes Bonn and the Ruhr area with Essen, Dortmund and Duisburg. In the north, Bremen and Hanover are the most sought-after B cities, in the east the focus is on Leipzig and Dresden, in the south on the Nuremberg-Fürth-Erlangen region as well as Augsburg, Mannheim and Heidelberg. In the Rhine-Main region, the state capitals of Mainz and Wiesbaden as well as the Darmstadt office location are served.
