On the morning of 24 October 2026, more than 1,000 participants gathered at the Liederhalle in Stuttgart for the 21st Property Day hosted by Haus & Grund Stuttgart. The traditional event focused on the growing operational and regulatory conditions facing property owners. Alongside regulatory policy debates regarding expropriation and tax burdens, the presentations centred on concrete shifts across the German property market.
Joachim Rudolf, Chairman of the Stuttgart property owners' association, pointed to the results of a recent representative survey among members. According to the findings, 64.8 per cent of surveyed landlords in Stuttgart rate the likelihood of wholly or partially abandoning their letting activities and selling off housing stock as high, citing state intervention and economic losses. Rudolf emphasised that it was not necessarily a single regulation that proved decisive, but above all the cumulative impact of regulatory density weighing on private market participants.
Demands for bureaucratic reduction and tax relief
Hubert Aiwanger, Bavarian State Minister of Economic Affairs, Regional Development and Energy and Deputy Minister-President of Bavaria, appeared as the keynote speaker. He spoke out clearly against expropriation initiatives and proliferating regulations. Aiwanger highlighted that private landlords were disproportionately burdened by complicated rules regarding heating requirements or the allocation of CO2 costs, which in some places even encouraged vacancies. Furthermore, he called for the complete abolition of inheritance tax to protect generational property from forced sales.
To underline the need for action in the construction sector, the minister presented figures from Bavaria. In 2025, although 54,150 dwellings were approved in the Free State, only 47,360 were completed. By the end of the year, the construction backlog amounted to more than 182,000 approved, yet unrealised homes. Aiwanger put forward concrete reform steps as potential solutions:
- —Introduction of Building Type E to reduce cost-intensive construction standards
- —Consistent reduction of construction and planning regulations that drive up prices
- —Targeted relief for the acquisition of home ownership by younger generations
Diverging price trends for residential and commercial properties
Jens Tolckmitt, Chief Executive of the Association of German Pfandbrief Banks, provided an analytical view of the transaction markets. While residential property is regaining value nationwide, the commercial property segment remains under pressure. Commercial exposures traditionally react more sensitively to economic fluctuations and also face structural changes brought about by the ongoing trend towards remote working.
In a regional comparison of Germany's major cities, Berlin demonstrated the strongest momentum in residential property prices, followed by increases in more rural areas. Stuttgart, by contrast, has been falling behind since 2025; the state capital of Baden-Württemberg has also lagged behind other major cities in rent increases over the past five quarters. The combination of construction costs and financing interest rates continues to present hurdles for prospective buyers, as the household income required for bank financing has risen noticeably.
