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Real estate market Germany 2021/2022

Into the second year of the Corona pandemic, commercial real estate and rental flats are still in demand. However, the individual segments of the real estate market in Germany are developing in different ways. These are the key findings of DZ HYP’s latest study on the development of the retail, office and commercial residential property markets in the seven top German locations of Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich.

Rents in the residential asset class continue to rise, albeit at a slower pace. This is due to increased construction activity and the slowdown in population growth in metropolitan areas. The office market is largely stable despite a moderate increase in vacancies and uncertainty about future demand for space. Modern offices remain in demand as communication centres. However, investors must expect stagnating rents compared to previous years. In retail, on the other hand, the Corona pandemic has reinforced the downward trend in rents caused by online shopping and further driven the reduction in retail space. Overall, the city centres of Germany’s top locations will remain attractive shopping areas. Alternative uses in sought-after locations are likely to counteract vacancies.

A sprecial section of the study is devoted to demographics. The ageing population is changing the demand for real estate in Germany. When baby boomers retire, the demand for office space will fall. The retail and housing markets, in turn, will increasingly have to adapt to the needs of senior citizens and an increased need for care.

The study “Real Estate Market Germany 2021/2022” is also available for download as a PDF on the left hand site.

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