Germany logistics real estate demand rises despite lower construction

The German logistics real estate market is experiencing a period of transition characterized by declining construction activity but rising demand for space. According to bulwiengesa, while total completions in the first half of 2026 reached approximately 1.84 million square meters, a decrease is expected for the full year due to selective project starts. Regional demand is showing signs of life, with Düsseldorf leading in space turnover at 268,000 square meters, followed by Hamburg and Cologne.

Data from BNP Paribas Real Estate indicates that total space turnover for the first three quarters of 2026 reached 5.5 million square meters, a 28% increase compared to the previous year and 9% above the ten-year average. The third quarter alone saw a 23% increase over the second quarter. Key drivers for this growth include logistics service providers supporting e-commerce, defense and armament companies, and manufacturing firms optimizing their structures.

Notably, locations outside major logistics hubs saw a 51% increase in turnover compared to the previous year, driven by better availability in the large-scale segment. Despite global economic pressures, including energy prices and geopolitical tensions, rents in prime locations have remained stable at approximately 8.90 Euro per square meter.