Monday, 5 October 2026
Germany’s real estate investment market slowed during the third quarter of 2026 after a stronger start to the year, while logistics continued to attract a growing share of institutional capital and moved increasingly close to offices as the country’s leading commercial investment sector.
Cushman & Wakefield recorded EUR 23.6 billion of commercial and residential transactions during the first nine months, 8% more than in the corresponding period of 2025. The increase was considerably weaker than at the end of the first half, when its figures showed annual growth of around 20%, indicating that transaction activity lost momentum during the summer.
The shift is particularly visible in the allocation of capital between property sectors. Cushman & Wakefield calculated approximately EUR 4.1 billion of industrial and logistics transactions, an increase of 18%, compared with EUR 3.76 billion invested in offices. On that dataset, logistics has moved ahead of offices for the first nine months of the year.
Other advisers produce a slightly different ranking. BNP Paribas Real Estate recorded EUR 23.1 billion of total investment, 3% below the previous year, and places offices at EUR 4.4 billion compared with EUR 4.0 billion for logistics. JLL, meanwhile, calculates total transaction volume of approximately EUR 23.9 billion and says activity was broadly unchanged year on year. The variations reflect differences in how transactions and property categories are recorded, but all show logistics competing closely with offices for investment capital.
The number of transactions also suggests that the market is more active than headline volumes alone indicate. BNP Paribas Real Estate counted more than 1,040 deals during the first nine months, its highest number since 2022, despite recording a decline in overall investment volume. Foreign buyers accounted for almost half of invested capital and were particularly prominent in logistics.
Other traditional sectors have experienced a more difficult year. Cushman & Wakefield recorded approximately EUR 2.2 billion of retail investment, close to half the comparable 2025 volume, while hotel transactions fell by almost 40% to EUR 960 million. Differences between adviser methodologies are significant in these sectors as well, with BNP Paribas calculating a higher retail total of around EUR 3.1 billion.
Investment linked to digital infrastructure is becoming more visible in the market. One of the larger transactions identified during the period was Amazon Web Services’ purchase of a development site at Schöneck in the Rhine-Main region for approximately EUR 220 million. Development land associated with data centres and other infrastructure-intensive uses is increasingly appearing alongside conventional commercial property transactions.
Despite greater deal activity than during the weakest period of the recent downturn, German investment volumes remain well below longer-term norms. Cushman & Wakefield’s nine-month total was 29% below the five-year average and 44% below the ten-year average. Savills separately calculated EUR 21.4 billion of transactions, slightly below the corresponding 2025 level, while recording an increase in the number of deals.
Financing conditions remain an important constraint. JLL reported that the recovery lost further momentum during Q3, with approximately EUR 6.3 billion transacted during the quarter compared with EUR 8.6 billion a year earlier. The result leaves Germany with a more active but still highly selective investment market, where logistics has emerged as one of the strongest competitors for capital while offices remain dependent on location, building quality and income security.
