Manya Rathore
Research expert covering India
Commercial real estate market in Germany - statistics & facts
Big challenges lay ahead for the German commercial real estate sector, as companies grapple with higher interest rates and sluggish economic growth. Demand for retail, office, industrial, and logistics properties is tightly interlinked with the development of the economy. January 2024 marked the eighth consecutive month of negative business sentiment, according to the ifo Business Climate Index, a survey among 9,000 businesses in manufacturing, services, trade, and construction in Germany. This economic uncertainty has affected real estate investments, causing them to drop to a record low. In January 2024, the 12-month rolling value of real estate investments amounted to 29 billion euros – four times lower than in April 2022.
