Germany commercial real estate faces major refinancing wave

A significant wave of refinancing is expected to hit the German commercial real estate market, potentially intensifying the existing crisis. According to an analysis by EY-Parthenon, approximately one-quarter of the multi-billion euro financing held by German real estate lenders is due for renewal within the next two years.

Many property owners may be forced to provide additional equity or fundamentally restructure their financing. This pressure arrives at a time when many loans were originally secured when property valuations were higher and interest rates were significantly lower.

Data from the European Banking Authority indicates that 6.8 percent of commercial real estate loans were non-performing in the first quarter of 2026. Furthermore, more than 40 percent of surveyed institutions reported being unable to find viable financing solutions in certain cases. Experts suggest this could turn the current commercial real estate crisis into a long-term issue, with a market recovery not expected until the beginning of the next decade.