Germany’s commercial real estate market entered 2026 with stronger momentum than many market participants had expected. According to Cushman & Wakefield, investment volume in the first quarter reached €7.55 billion, which is 23% higher than in the same period of 2025, when it stood at €6.13 billion. This marks the third consecutive first quarter with positive year-on-year growth, a notable signal that the capital market is gradually emerging from a prolonged downturn.

📉 At the same time, even after this growth, the market remains below historical benchmarks. Transaction volume in Q1 2026 was still 14% below the five-year average and 29% below the ten-year average.

📍 A key feature of the current recovery is that it is uneven and no longer limited to the largest cities. A significant share of investment activity has shifted beyond Germany’s top seven markets. This segment showed the strongest growth, with transaction volume outside the major cities increasing by 59% year-on-year to €5.12 billion. Moreover, 12 out of the 20 largest transactions in the quarter were completed outside the core markets, including locations such as Kaarst, Bischweier, Nuremberg, Kiel, and Warstein.

🏬 In terms of asset classes, the market also looks more dynamic than a year ago. Office properties remained the largest segment, accounting for €1.66 billion, or 22% of total volume, with a 9% year-on-year increase. However, the strongest growth was recorded in the healthcare sector, which reached €1.23 billion, representing 16% of the market and nearly doubling compared to Q1 2025. Logistics and industrial assets accounted for 18% with €1.35 billion, although this segment declined by 14%. Retail properties contributed €1.21 billion, or 16% of total volume, with a moderate decline of 4%.

📊 Key factors supporting the market at the start of the year included:

— renewed interest in the office segment following a deep correction;
— a strong contribution from healthcare assets, including the major Aedifica–Cofinimmo transaction;
— increased activity outside major cities, where investors are seeking scale and yield.

💼 Another important sign of recovery is the increase in portfolio transactions. Their volume reached approximately €2.3 billion, nearly two-thirds higher than a year earlier. The share of such transactions rose to 30%, compared to a five-year average of 27% and 22% in Q1 last year.

🌍 Foreign capital participation has also strengthened. In Q1 2026, international investors accounted for 43% of total transaction volume, the highest share since the first quarter of 2022.

🏗 Germany’s commercial real estate market has not yet returned to pre-crisis levels, but it has clearly moved out of a wait-and-see phase. For investors, this means a gradual return of liquidity and a broader range of opportunities across segments. For sellers, it signals that market conditions are improving compared to 2023–2024.

🔎 You can explore commercial real estate opportunities in Germany based on your investment strategy, budget, and target segment on our website.