Commercial Space Transactions and Demand for Land

Commercial Space Transactions

Trends in Space Transactions and Sales

For the year 2025, the Hanover region recorded a commercial land turnover of 29.6 ha (Source: State Office for Geoinformation and Land Surveying, Hanover Regional Directorate/Cadastral Office). These are sites ready for development, i.e., generally undeveloped parcels that are designated as commercial building sites in the land-use plan (F-Plan) in accordance with the Building Land Use Ordinance (BauNVO) (Fig. 1). 

Land sales volume is thus significantly below the long-term average (1992–2025) of 59.1 ha. In 2024, total sales volume was 19.4 ha, and in 2023, it was 34.6 ha.

The resurgence—albeit modest—in land sales volume and the number of sales transactions suggests a certain recovery in activity compared to the record low of the previous year. However, given that levels remain well below average, this can at best be described as the beginning of a recovery trend. The declining sales figures in recent years must also be viewed in the context of the requirement to reduce land consumption.

Furthermore, a certain degree of fluctuation in land sales volume is not unusual; for example, in the periods from 2001 to 2025 and from 2009 to 2015, there were repeatedly years in which land sales volume fluctuated between 30 and 45 ha.

Along with the volume of land, the number of sales transactions has also risen slightly (Fig. 1). The average size per land sale, which has increased noticeably in recent years, rose from 0.59 ha in the previous year to 0.72 ha in 2025 following two declines in prior years, and thus exceeds the long-term average of 0.6 ha.

Table 1 shows the land sales volume and the number of sales transactions, broken down by municipality.

• In terms of space turnover for the year 2025 (see also Fig. 2), Laatzen leads the way with 9.1 ha. It is followed by Uetze with 5.7 ha, the state capital of Hanover with 4.3 ha, and Garbsen with 3.0 ha. Compared to the respective long-term average since 1992, only Laatzen and Uetze will achieve above-average annual turnover in 2025.
• The highest total area turnover over the entire period since 1992 was recorded in the state capital, Hanover (408.2 ha), Lehrte (204.5 ha), Langenhagen (199.5 ha), and Barsinghausen (138.8 ha).
• The state capital, Hanover, will have the most sales transactions in 2025 with ten, followed by Wedemark with four, and Laatzen, Neustadt, Springe, and Uetze with three each.

In a long-term comparison dating back to 1992, Hannover accounts for the most sales with 574 transactions, followed by Neustadt (236), Wunstorf (231), and Isernhagen (222).

Land Sales by Plot Size Class

Fig. 3 illustrates the distribution of commercial land sales by lot size class for the year 2025 compared to the entire period since 1992. According to the data, 71% of sales consist of small and medium-sized lots up to 5,000 square meters—a figure slightly below the long-term average (75%). Larger properties between 5,000 and 10,000 square meters account for 17% of sales volume, which is above the long-term average of 12%. The sales volume of large properties (> 10,000 square meters) stands at approximately 12%, which is nearly in line with the long-term average (13%).

Sales by Area and Trends in Land Prices

Average prices for sites depend to a large extent on the quality of transportation connections, the type of use, and the size of the property. Sites in the state capital of Hanover, in particular, exhibit a highly differentiated price structure depending on their suitability for specific uses (office, retail, industrial, logistics).

The average prices of sold land, broken down by regional subzones, fell by 35% across all locations from 2024 to 2025.

After purchase prices reached new record highs in 2024 both in the state capital of Hanover and in the immediate surrounding area, price levels in these two subzones declined significantly in 2025. For example, average prices per square meter in the state capital of Hanover fell from a record high of 333.80 €/sqm in 2024 to 187.15 €/sqm in 2025.

This means that last year’s average purchase price is nearly equal to the ten-year average of 182.80 €/sqm. The most significant price change is observed in the municipalities of the immediate surrounding area. Here, prices fell from 200.00 €/sqm (2024) to 99.56 €/sqm. In the outer region, prices remained virtually unchanged at 80.88 €/sqm (2025) compared to 80.90 €/sqm (2024).

Commercial Real Estate Transactions by Regional Origin of Businesses and Use Categories 

An analysis of the sales transactions by origin of the businesses for the year 2025 shows that the vast majority of sales—by a wide margin—were relocations within the

municipality (Fig. 5). This category accounts for 56% of sales. The proportion of expansion purchases on neighboring properties has decreased compared to 2024 (from 17% to 11%). Against the backdrop of dwindling land availability, local companies are increasingly securing reserve land for expansion. It is increasingly common for municipalities to allocate land exclusively or preferentially to companies already located there. Relocations between municipalities in the surrounding area accounted for 11% of cases in the year under review, whereas interregional relocations accounted for 17% of cases.

Land Inquiries by Use Category and Lot Size

Further insights into land use categories and desired lot sizes can be derived from location inquiries recorded by the Hannover Region Business Service and the municipalities. A total of 179 evaluable cases are available for 2025.

• Logistics-related uses account for 11% of all inquiries (Fig. 6). Within this group, demand varies across different lot sizes depending on specifications, but the majority of searches are for lots of 10,000 square meters or larger. In second place, with 10%, is the industry/manufacturing sector, which primarily seeks larger lots of 1.0 hectare or more.
• In third place are the usage groups hotels, restaurants, and entertainment venues (9.0%), with demand concentrated between 1,000 and 6,000 square meters, as well as business-related services (9.0%) with space inquiries ranging from 1,000 to 5,000 square meters. Next is the group comprising manufacturing trades, (automotive) repair shops, and gas stations (8.0%), mostly with requests for up to 2,000 square meters, followed by the construction industry, building materials trade, and warehouses (8.0%), which mostly seek spaces of 1.0 hectare or more.
• The real estate sector , accounting for 8.0%, is seeking larger spaces, averaging between 5,000 square meters and 2 hectares, and in some cases significantly larger, while the energy sector ( 7.0%) is seeking both smaller spaces between 500 and 5,000 square meters and larger spaces of 1.0 hectare or more.