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Market Analysis··2 min read

German Logistics Real Estate Market: Revival in Demand Amid Declining Construction Activity

The German logistics real estate market is experiencing a gradual recovery on the user side, while construction activity is decreasing, with regional differences persisting.

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German Logistics Real Estate Market: Revival in Demand Amid Declining Construction Activity. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The German logistics real estate market is currently in a phase of consolidation and reorientation. While construction activity in the sector continues to decline, initial signs of a revival are emerging on the user side. However, this development is regionally divergent, and both project development and financing, as well as investment, remain selective. These findings are based on the short study "Logistics and Real Estate 2026" by bulwiengesa, which offers detailed insights into current market dynamics.

Alexander Fieback, Team Lead for Office and Commercial Real Estate at bulwiengesa, states that the logistics real estate market in 2026 is moving between decreasing construction activity and regionally increasing demand. A widespread recovery is not yet evident. This makes locations and projects that demonstrate robust user demand and future-proof quality characteristics all the more crucial.

Development of Construction Activity and the Lettings Market

After approximately 4.5 million square metres of logistics space were completed in 2025, this volume fell to about 1.84 million square metres in the first half of 2026. A further decline in completions is forecast for the full year, attributed to the stretching of project timelines and a more selective initiation of new ventures. On the lettings market, however, initial signs of recovery are regionally discernible.

In the first half of 2026, Düsseldorf recorded the highest take-up with approximately 268,000 square metres, followed by Hamburg with around 233,000 square metres and Cologne with about 182,000 square metres. Düsseldorf thus surpassed the entire take-up volume of the previous year after just six months. Despite these positive developments in individual regions, a widespread market recovery is yet to materialise.

Rents, Yields, and Demand Impulses

Rents in prime locations, including the Rhine-Ruhr region, have largely stabilised at a high level. The average prime rent in the first half of 2026 remained around EUR 8.90 per square metre. The average prime yield rose moderately from 4.6 to 4.7 percent over the same period. Investment activity continues to focus on high-quality locations and properties with secure letting prospects.

Additional demand impulses are coming from the defence sector and from Asian users. The requirements of the defence sector increasingly include production and technically specialised properties, in addition to classic logistics real estate. On the user side, Asian companies such as Goodcang Logistics, JD Logistics, and SK Express are increasingly emerging, enriching the market with new demands.

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