Property Sales in the First Half of 2026 Remain Stable

July 10, 2026- After years of uncertainty, signs of cautious stabilization are increasing in the German real estate market.

However, the economic recovery is proceeding slowly and remains hampered by structural challenges and geopolitical risks. Consequently, many market participants continue to act cautiously; at the same time, high-quality properties, strong locations, and long-term, sustainable usage concepts are gaining further importance. Office market holds steady at previous year’s level.

Real estate companies in the Hanover region take stock

Data collected by the Hannover Region Economic Development Agency shows a stabilization in leasing activity in the office real estate market. In the first half of 2026, approximately 60,000 square meters of office space were leased, bringing the total leased area in line with previous years. A total of 120,000 square meters is expected for the full year. Between 2021 and 2025, the average was 124,000 square meters. When leasing space, companies are increasingly favoring prime locations and higher-quality properties. At the same time, individual space requirements are decreasing, as hybrid work models and modern workplace concepts are driving up demand for smaller and more efficient office spaces.

Logistics Market Remains Cautious

The logistics space market remains subdued: In the first half of 2026, approximately 110,000 square meters were leased or used by the owner. The forecast for the full year is thus roughly in line with the previous year’s figure of 216,000 square meters. Medium-sized and smaller spaces are currently in particularly high demand, while large-scale properties are being leased less frequently.

Comprehensive Market Report to Be Published in September

The economic development agencies of the state capital and the Hannover region are collaborating with approximately 30 companies from the real estate industry, as well as the consulting firm bulwiengesa AG, to produce the annual real estate market report. The report provides data, assessments, and outlooks for the office, logistics, residential, retail, and hotel submarkets and will be published online at the end of September 2026 on the website www.immobilienmarktbericht-hannover.de.