Sentiment in the German real estate sector showed signs of a slight bottoming out in November 2026. In the latest 227th monthly survey by Deutsche Hypo among approximately 1,000 industry experts, the real estate climate rose marginally compared with the previous month of October by 0.4 per cent to 78.5 points. Despite this stabilisation, the overall figure remains noticeably subdued year on year, with a decrease of 18.5 per cent.
A proportional movement characterised the two key sub-indicators. Both the income climate and the investment climate rose by 0.4 per cent each compared to October. The income climate thus reached 90.3 points, whilst the investment climate stood at 67.2 points. However, the historical context highlights the ongoing restraint in the transaction market: compared with the same period of the previous year, the income climate is down by 8.5 per cent and the investment climate is lower by as much as 28.5 per cent.
Divergent trends across individual property types
Beneath the aggregate index, a mixed picture emerged across the various sectors in November. Whilst office and retail property posted tangible gains, the residential, logistics and hotel segments had to accept losses. The strongest rise in sentiment was recorded by the office climate, which improved by 5.7 per cent to 64.8 points. The retail climate also gained noticeably with an increase of 4.4 per cent, rising to 69.2 points.
In contrast, the logistics segment recorded a marked deterioration. With a drop of 9.6 per cent to 91.8 points, the logistics climate was the month's biggest dampener. The hotel climate weakened by 2.6 per cent to settle at 87.2 points. The residential climate also suffered a decline of 3.4 per cent and now stands at 115.3 points, although residential property continues to represent the absolute strongest segment in the sentiment barometer.
Key figures for November at a glance
- —Overall index: increase of 0.4 per cent to 78.5 points
- —Office sector: strongest growth with a rise of 5.7 per cent to 64.8 points
- —Logistics sector: sharpest decline, down 9.6 per cent to 91.8 points
- —Residential market: decrease of 3.4 per cent to 115.3 points whilst maintaining segment leadership
The latest findings reflect a cautious balancing of the market environment. Whilst the income and transaction expectations of the surveyed professionals remained stable on a monthly basis, the gains in office and retail space as well as the adjustments in logistics and residential highlight the nuanced assessment of the asset classes.
