The 223rd monthly survey of around 1,000 real estate experts revealed a noticeable improvement in real estate sentiment in July 2026. The Deutsche Hypo Real Estate Climate rose by 9.1% compared to the previous month, reaching 86.6 points. This development currently positions the index only 7.5% below its level at the start of the year. Both the earnings and investment climate showed significant gains during the reporting month. The investment climate saw an increase of 10.2% to 82.0 points, while the earnings climate rose by 7.8% to 91.1 points.
Year-on-year, the declines moderated: the investment climate was only 9.4% below the level of July 2025, and the earnings climate 9.6% below. These indicators point to ongoing stabilisation, even if the recovery in earlier market cycles was faster and market liquidity remains constrained.
Segment-Specific Developments and Background
All sub-segments of the real estate market recorded significant gains in July. The logistics climate showed the strongest increase, up 13.6% to 102.8 points. Other segments also developed positively: the retail climate improved by 8.7% to 77.3 points, the residential climate rose by 7.9% to 131.7 points. The office climate increased by 8.9% to 68.2 points, and the hotel climate recorded a value of 98.5 points after a gain of 7.8%.
Ingo Martin, Head of Origination at Deutsche Hypo – NORD/LB Real Estate Finance, commented on the July figures. He highlighted that the positive development aligns with observations from major brokerage firms, which have noted a gradual stabilisation of the investment market, a convergence of price expectations, and a slowly increasing willingness to transact since the beginning of the year. Despite these positive trends, according to Martin, capital market yields and short-term interest rates have tended to rise, and geopolitical risks as well as fragile economic dynamics persist. Developments in the Middle East, in particular, could temper hopes for falling energy prices and a normalisation of global trade flows.
The recent more robust export figures, the prospect of higher government investments, and the announced economic policy reform plans of the German Federal Government could indeed foster expectations of an improved economic environment. However, it remains to be seen whether this development is sustainable. Overall, the July results indicate a growing hope among market participants that the bottom may have been reached. A final all-clear is currently premature due to geopolitical and economic uncertainties. Developments in the coming months will show whether the positive sentiment translates into a sustainable revitalisation of the real estate market.
- —86.6 points: Overall real estate climate recovers significantly.
- —+13.6%: Logistics climate records double-digit growth.
- —91.1 points: Earnings climate surpasses the 90-point mark.
