Forecasts for an economic recovery in Germany at the start of the year could not be confirmed in the first half of 2026. A combination of new geopolitical crises, persistent structural problems within the German economy, and a tightened financing environment influenced the demand for industrial and logistics spaces. Markus Müller, spokesperson for German Property Partners (GPP), stated that the Top 7 logistics markets had proven resilient despite these conditions. A detailed analysis of prime rents, land prices, and prime yields in these locations was carried out by GPP companies Anteon Immobilien, E & G Immobilien, GREIF & CONTZEN Immobilien, and Grossmann & Berger Immobilien.
Demand for space showed regional differences in the first half of the year. While the market in Hamburg demonstrated continued robustness, economic uncertainty and subdued investment activity led to a more restrained market dynamic, particularly in Cologne and Stuttgart. This was accompanied by a prolongation of many rental processes. Prime rents remained largely stable throughout this period. The highest prime rent continued to be registered in Munich at EUR 10.90 per square metre per month in the city area. Only in the Stuttgart hinterland was a decrease observed, where the prime rent fell by EUR 0.70 per square metre to EUR 9.20 per square metre since the beginning of the year.
Fundamental interest in industrial and logistics real estate remained high in the investment market. However, increasing mortgage interest rates and more restrictive financing conditions made it difficult to conclude transactions in many locations. A slight upturn was noticeable in Düsseldorf, where exclusivity agreements were again more frequently granted and properties were being reviewed. Buyer interest focused primarily on traditional logistics properties, while demand for production and light industrial properties was lower. Logistics prime yields indicated a range between 4.40 percent and 4.70 percent, showing a slightly increasing trend. The lowest prime yield continued to be recorded in Düsseldorf at 4.40 percent, followed by Cologne at 4.60 percent, and Hamburg and Stuttgart each at 4.70 percent. An increase was evident particularly in these three markets, although the data basis was limited due to the low number of top transactions.
Project developers continued to face subdued demand for space and restrictive financing conditions. Speculative project developments remained an exception in this context. Accordingly, land prices recorded only isolated increases. Munich continued to show the highest price level for land at up to EUR 790 per square metre.
A rapid economic recovery is not expected at present. Should geopolitical conditions improve and energy prices fall, demand could gradually pick up in the second half of the year. Slightly increasing market activity is predicted for Hamburg. In Cologne, individual larger new-build leases could again push up prime rents in the city area. The reluctance of many investors in the investment market will persist initially given the persistently high interest rate environment. It remains to be seen whether the recently slightly increasing trend in prime yields will continue. Speculative project developments are likely to remain the exception. In the Stuttgart hinterland, land prices could come under additional pressure due to weak demand for space and falling prime rents. Markus Müller noted that there are initial signs of a slight improvement in sentiment, but it is still too early for a noticeable turnaround. As long as economic and geopolitical conditions remain uncertain, companies and investors will continue to make their decisions with great caution.
