The Association of German Property Managers (VDIV Deutschland) recently published the results of its 2026 industry barometer. The survey paints a picture of an industry primarily structured by medium-sized businesses. Despite a challenging macroeconomic environment, the industry remains economically sound but is increasingly reaching its capacity limits. Drivers of this development include ongoing digitalisation, new ESG requirements, a persistent shortage of skilled labour, and an increase in regulatory demands, all of which necessitate a business transformation.
The survey results highlight the strained situation: 62.1 per cent of the companies surveyed reported being overloaded. This figure increases with company size. Staff shortages exacerbate the situation, as more than half of management firms cannot fill vacant positions. Furthermore, the demands of owners' associations are continuously growing. Greater integration of digital processes, the use of Artificial Intelligence, and continuous employee training are therefore gaining importance. This is juxtaposed with rising investment costs that companies must generate themselves.
Property management firms cite the difficult-to-predict time required per property (64.7 per cent) and unforeseeable additional tasks (38.2 per cent) as primary daily challenges. This leads companies to increasingly manage their portfolios actively, rather than focusing exclusively on pure expansion. A clear majority of 57.1 per cent of companies plan to divest themselves of time-consuming properties. Furthermore, 49.5 per cent intend to relinquish unprofitable mandates. Only 5.7 per cent of respondents are sticking to their previous strategy.
This selective strategy already begins during acquisition. For 45.9 per cent of respondents, more than half of incoming requests from owners' associations were either rejected, not pursued further, or answered with a deliberate deterrent offer. Additionally, 31.0 per cent of management firms plan to divest smaller properties. A fifth of companies (21.0 per cent) intend in future to only accept properties above a certain minimum size, which averages around 16 residential units per property.
To address the aforementioned challenges and continue to meet client demands, increasing fee rates are unavoidable. Last year, rates for owners' association management rose by 2.7 per cent. In rental property management, the increase was 3.4 per cent, bringing the average rate to EUR 30.19. For the current year, respondents plan an average standard fee for owners' association management of EUR 31.77, representing a rise of 9.1 per cent.
Martin Kaßler, Managing Director of VDIV Deutschland, contextualised the results of the annual survey by emphasising that the industry is increasingly relying on business key performance indicators, which is urgently necessary given the rising demands. He pointed out that companies operating without controlling and clear calculation will face significant difficulties in the future. Key performance indicators also create transparency for owners, making the justification for potential fee adjustments more comprehensible. According to Kaßler, companies must therefore adjust their prices and at the same time strengthen their data basis to secure both their profitability and the future viability of the industry, which bears responsibility for millions of residential units in Germany.
