BNPPRE Dashboards

Office market Q3 2025

Office take-up in Germany's most important office markets – Berlin, Düsseldorf, Essen, Frankfurt, Hamburg, Cologne, Leipzig and Munich – amounted to a good 2.0 million sqm at the end of the third quarter. This represents an increase of 3.4% on the previous year's level, and a direct quarterly comparison emphasizes the overall stability of the market in a continuingly weak economic environment. Positive momentum has recently been generated by the important mid-sized segment, which has seen a significant and sustainable increase in letting activity in recent months after a long period of stagnation. The market for small-sized space remains dynamic, while the rapid pace of large-scale lettings seen at the beginning of the year could not be maintained.

Commercial investment market Q3 2025

Commercial investment volume after the first three quarters of the current year stands at €17.5 billion, which is only slightly lower than in the previous year. However, since the middle of the year, there has been a noticeable upturn in the markets, which is also reflected in the transaction volume achieved, which amounted to a good €6.1 billion in the past three months, approximately 7% higher than in the same period last year. However, it should be noted that the increase in turnover anticipated at the beginning of the year has not yet been realised to the expected extent. Several factors are responsible for this, including the continuing very subdued development of the overall economy.

The share of certified green buildings within the commercial investment volume (excluding portfolios) remains at a very high level, even in a challenging market environment. After the top figure of just under 31% in 2022, around 27% was achieved in 2023. This is the second-highest share in the last 10 years and confirms the importance of green investments. While the EU Taxonomy mainly concerned companies in the real estate sector that wanted to place funds on the capital market, it is now affecting more and more market participants. Accordingly, sustainability regulations are becoming increasingly important for investors and buyers across the board, while at the same time occupiers (tenants and leaseholders) must now also take taxonomy criteria into account in their corporate governance. Against this backdrop, proactive management will remain the order of the day in 2024.

Logistics market Q2 2025

With a take-up of around 2.7 million m², the result on the nationwide logistics market increased by almost 11% compared to the previous year. The second quarter was particularly lively, achieving a significantly higher volume of just over 1.5 million m² compared to the start of the year. Despite the weaker first quarter, the result still deviates by around 15% from the ten-year average. Overall, there is more activity in the market compared to the previous year, which is reflected not only in pure take-up figures but also in a higher number of space requests. The positive sentiment and confidence of companies are noticeably increasing, and more large-scale contracts are being recorded again. Prime rents stabilised mostly in the second quarter, and the year-on-year increase across all major locations reaches only around 1%. In contrast, average rents show a more significant growth, with a rise of 4% compared to mid-2024.

Retail market Q2 2025

A look at the leased retail space in German city centers highlights that market activity is not only stable but has settled at a healthy level. Although the extremely high volumes seen during the expansion years up to 2019 can no longer be used as reference points, the retail market has once again performed well in comparison to the past five years after the first six months of 2025. Nationwide, approximately 230,000 m² of retail space was newly leased or opened in the first half of the year. This matches the volume of the previous two years, which each saw results of around 235,000 m² - only slightly higher. Notably, the current re-leasing momentum in former Galeria properties has gained further traction, reaching nearly 30,000 m² (almost 15% share of total take-up) compared to 2024 (Q1-Q4 2024: approx. 22,000 m²; around 4%). A symbolic example of this development is the July opening of Decathlon in Konstanz, marking the first store launched under the new partnership between the French sporting goods retailer and Galeria. This collaboration, expected to expand significantly in the second half of the year, is drawing particular attention: After the initial wave of re-lettings in former department store locations proved largely unsustainable, Decathlon could emerge as a new anchor tenant with strong customer potential for many smaller cities. In addition to big retail brands, regional players continue to demonstrate that they are actively engaged in the transformation process, evolving through new, modern stores or renovations. Given the outlined market conditions, the prospects for further positive developments in the retail market over the remaining year are generally good.

Residential Dashboard Q3 2025

After the first three quarters of 2025, the residential investment volume amounted to €6.3 billion. Thus, residential continues to hold first place as the most lucrative asset class in the German real estate market even after nine months. The significantly improved sentiment is supported by forward deals, which have gained in importance. In addition, the noticeably increased weight of large-scale nationwide portfolios, as well as the renewed interest in the value-add segment, contribute significantly to the sustainable recovery of the market. For the final quarter, a continuation of the upward trend is expected, as many investment products that just entered the market in the second quarter have resulted in a large backlog of transactions yet to be completed. Given the very well-filled deal pipeline and the prospect of further portfolio restructurings, an investment volume in the double-digit billion range by the end of the year appears realistic from the current perspective.

Residential rental & purchase price navigator

The residential markets of the most popular metropolises in Germany have been dominated by rising rental and purchase prices for years. But what is the situation in the rest of the country? BNPPRE investigated this question and analyzed all 108 independent cities in Germany. With the BNPPRE Residential Navigator, which is updated every six months, you can make further progress through the numerous residential markets and keep an eye on rental and purchase price developments (for condominiums) in the new builds and existing stock as well as other key figures.

District Dashbboards

Find out more about current (rent) prices in Berlin, Frankfurt, Hamburg and Munich and the price trend at a district level in our new District Dashboards. Click here for detailed rent and price comparisons:

Hotel Dashboard Q3 2025

The increased interest in hotel investments, evident for some time now, is also reflected in transaction volumes. With a total turnover of nearly €1.43 billion, hotels have boosted their volume by almost 44% compared to the same period last year, achieving their best result since 2021. By the end of September, the 12-month volume from the previous two years had already been surpassed. Particularly noteworthy is the positive market momentum over the course of the year, as evidenced by two very strong quarters with investment volumes of almost €600 million each, following a rather weak start to the year due to a shortage of available product from 2024. Also encouraging is the upward trend in the portfolio segment, which reached nearly €380 million - the highest volume since 2020. At the same time, the volume of individual transactions has, for the first time since 2022, exceeded the €1 billion mark. There is a high probability that this asset class is now at the beginning of a new cycle. This presents investors with excellent entry opportunities to benefit from the expected yield compression.

The Hotel Dashboard from BNP Paribas Real Estate provides an overview of the development of hotel investment and performance indicators in the various top markets in Germany.

BNPPRE Tourism analyser

On the German hotel market, all key performance data indicates a sustainable recovery in tourism in Germany after the challenging COVID-19 years of 2020 and 2021. Significant increases in overnight stays by guests in accommodation establishments were already evident in 2022 (+49%) and 2023 (+61%). In 2024 around 496 million overnight stays were recorded, which not only exceeds the pre-COVID-19 figure from 2019, but also represents a new record in a long-term comparison. This reflects the resurgence in demand from city and business tourism as well as guests from abroad. Compared to the previous year, the number of overnight stays by foreign guests rose by a good 5% (85 million guests in 2024). Other key figures such as room occupancy and average prices also developed positively. By 2024, the occupancy rate had returned to a high level of just under 67% nationwide. The top 5 most popular travel destinations in 2024 are Berlin (31 million guests), Munich (20 million guests), the Baltic Sea (19 million guests), Hamburg (16 million guests) and the Main/Taunus region with 15 million guests. Furthermore, 52 million overnight stays were already registered between January and February 2025 - a strong signal for a continued positive trend in the current year.