Sentiment in the German real estate market remains subdued. In the 226th monthly survey of around 1,000 real estate experts, the Deutsche Hypo Real Estate Economy Index recorded another decline in October 2026. Compared with September, the overall index dropped by 2.9 per cent to 78.2 points. Compared with the same month last year, this represents a significant decrease of 18.0 per cent.
Notable in October is the divergent trend between the two main indicators, yield and investment. While the yield climate gained 3.8 per cent to stand at 89.9 points, the investment climate slumped heavily. Here, Deutsche Hypo recorded a drop of 10.3 per cent to 66.9 points, underlining market participants' ongoing scepticism regarding new investment decisions.
Divergent developments across asset classes
Downward corrections predominated across the individual asset classes in October. Only the logistics segment managed to resist the negative overall trend. The logistics climate recorded a gain of 3.0 per cent, climbing to 101.5 points and thus re-establishing itself above the neutral threshold.
By contrast, the office, retail, residential and hotel segments all weakened. The sharpest setback was suffered by the office climate, which fell by 5.0 per cent to 61.3 points. The residential climate also lost noticeable ground, decreasing by 4.9 per cent to 119.4 points. Despite these losses, the residential sector maintains its status as the strongest segment in the overall market environment.
A moderate cooling was also recorded in the retail and hospitality sectors. The retail climate fell by 2.2 per cent to a level of 66.3 points, whilst the hotel climate slipped by 1.0 per cent to stand at 89.5 points. The expert survey therefore reflects a nuanced, yet predominantly cautious overall picture.
- —Real estate climate falls by 2.9 per cent to 78.2 points
- —Investment climate slumps by 10.3 per cent to 66.9 points
- —Logistics climate is the only segment to gain, rising 3.0 per cent to 101.5 points
- —Office climate suffers the sharpest drop, down 5.0 per cent to 61.3 points
