TOP 7 INDUSTRIAL AND LOGISTICS PROPERTY MARKETS 2025: Rising land prices in some markets; investor focus on Core-Plus and Value-Add

The demand for industrial and logistics space in Germany’s Top 7 markets was still affected by a weak economic environment. Particularly in Hamburg, Cologne and Stuttgart, only few large-scale property searches were recorded. Instead, demand has shifted towards the small to medium-sized space segment. Düsseldorf and the Ruhr Region were positive exceptions from this trend: here, the market benefited from a vibrant demand, particularly by Asian logistics companies seeking properties with connections to the Dutch seaports. “Despite delayed decision-making processes, the German market remains remarkably stable due to its structural fundamentals. At some locations, first major deals have already sent positive signals – a trend which could gain further momentum in 2026,” says Björn Holzwarth, spokesperson for German Property Partners (GPP). 

The developments in prime rents, land prices and prime yields at Germany's Top 7 markets have been compiled by the GPP partners Anteon Immobilien, E & G Immobilien, GREIF & CONTZEN Immobilien and Grossmann & Berger Immobilien.

PRIME RENTS RISING in SEVERAL MARKETS

In 2025, the availability of space largely depended on the age of the respective building. In Cologne, Hamburg and Stuttgart, vacancy rates rose particularly at older existing property. At the same time, the supply of new builds available for short-term take-up has remained scarce. Prime rents rose at central locations in several of the Top 7 market. This increase was particularly pronounced in Düsseldorf, where the monthly prime rent in the city district climbed to €9.20/m² (+16.46%). Cologne (+5.33%) and Frankfurt (+2.22%) also reported moderate increases. Munich remained virtually unchanged and continued to achieve the highest value with €10.90/m² per month.

In several markets such as Hamburg and Cologne, rent increases rather took place in the periphery, as there were hardly any new lettings at city locations. This increase was most significant in the areas surrounding Cologne and Düsseldorf, where prime rents rose to €8.50/m² per month (+30.77% and +23.19%).

LAND PRICES INCREAsING IN FRANKFURT AND MUNICH 

Project developers continued to be active in the logistics and light industrial segment. They were also showing interest in existing property and larger plots. While financing remained restrictive, high requirements on equity and pre-letting made speculative construction more challenging. Therefore, developers were increasingly relying on cooperations with end investors, or they took on projects for owner-occupiers within the framework of a service-developer model.

In most of the Top 7 property markets, purchase prices for land have remained largely stable. In Frankfurt and Munich, where commercial land is very scarce and vacancy rates are low, prices continued to rise. In the Frankfurt metropolitan area, they are now back in the range of €290 to €530 per square metre. In Munich, prices lie between €450 and €790 per square metre, almost reaching the level seen in 2022. The current expansion of data centres is driving up the demand in suitable locations leading to higher purchase price expectations among sellers. This trend can be observed in the area around Cologne, for example.

STABLE PRIME YIELDS – CORE-PLUS AND VALUE-ADD revitalise MARKETs

The investment market for industrial and logistics property picked up moderately in 2025 with prime yields remaining largely stable at around 4.5%. Several large property portfolios have changed ownership. Many investors expressed particular interest in core-plus products and the value-add segment. The latter often comprises older existing property assets that buyers acquire with the aim of modernising or redeveloping them. Sellers were increasingly accepting lower purchase prices, which noticeably stimulated market activity. In result, value-add logistics property proved to be much more viable than, for example, older office buildings in need of modernisation, where price expectations still diverge significantly.

FORECAST:  INDUSTRIAL & LOGISTIcS PROPERTY WITH STABLE DEMAND DESPITE WEAK ECONOMY

A rapid economic recovery is currently not expected for Germany. “We continue to assume stable demand in the small and medium-sized segment for 2026. The demand-boosting impulses from politics and economic stimulus packages are also likely to positively impact the larger space segment by the middle of the year. This should contribute to further market recovery,” summarizes Björn Holzwarth the market prospects. In the rental segment, GPP expect further lettings in new buildings, which may drive up prime rents in some locations. “In the investment market, prime logistics yields are bound to flatline in the coming months. Overall, transaction activity is likely to pick up again, as refinancing needs and restructuring will create new supply and investors make more capital available for new investments. We therefore expect increasing transaction volume in 2026,” says Holzwarth.

The fact sheet on the Top 7 industrial & logistics property markets in Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich is now available for download on our website.