Germany’s commercial real estate market started 2026 with growth. According to Bundesbank and vdpResearch data, commercial property prices in Germany increased by 2.1% year-on-year in the first quarter of 2026. This continues the recovery that began in mid-2024 after a prolonged decline in prices.

Reuters also highlighted this signal on May 27 in the context of Aroundtown’s financial results. Aroundtown, one of Germany’s largest publicly listed landlords, reported that its quarterly profit had more than halved to EUR 118.9 million. At the same time, the commercial real estate market itself continued to grow after several years of pressure on asset valuations.

💡 For Germany, this is an important turning point. The commercial segment was hit hard after 2022 due to rising interest rates, higher financing costs, and the repricing of office and retail assets. The market is not returning to rapid growth yet, but it is showing signs of stabilization.

Key figures for the first quarter of 2026:

• commercial real estate: +2.1% year-on-year;
• office real estate: +1.9%;
• retail real estate: +1.5%;
• residential real estate: +2.3%.

The growth remains moderate, but it matters precisely because it follows a deep downturn. For investors, this means that the German market is gradually moving away from its price bottom. However, the recovery is uneven: properties with strong locations, long-term tenants, and predictable rental income remain in the strongest position.

🏢 The office segment remains the most sensitive. Demand has shifted toward modern buildings with good transport accessibility, energy efficiency, and flexible layouts. Older offices that have not been modernized may still be sold at a discount.

Retail real estate is recovering more slowly. It remains under pressure from changing consumer behavior, the growth of e-commerce, and tenant caution. For this reason, the 1.5% increase looks more like stabilization than the beginning of a strong upswing.

What this means for investors:

• Germany is once again showing price growth in the commercial segment;
• the market remains cautious, so asset quality matters more than the purchase itself;
• properties with stable rental income look stronger than speculative projects;
• weaker office and retail assets still require detailed due diligence.

💼 The main takeaway: Germany’s commercial real estate market has stopped falling and is gradually returning to the investment agenda. But the new cycle will differ from the era of cheap money. Investors are increasingly focusing not on expectations of rapid capital growth, but on current income, tenants, maintenance costs, and the modernization potential of each property.

🔎 You can find current property options in Germany for investment or living on our website.