Commercial real estate market: Restraint on the office market, hotels on the rise
Stabilization in sight
After two years of economic downturn and slight growth last year, there are signs of a cautious recovery for the current year. At the same time, the commercial real estate market is becoming increasingly stable, although the individual asset classes continue to show different trends. While the hotel market continues to recover and cautious optimism is emerging in the retail and residential real estate markets, the office market segment remains cautious. Despite rising sales, the logistics real estate market is tending to move sideways. This is the preliminary result of the annual review conducted by the Region Hannover and the state capital Hannover together with the most important and market-influencing players in the regional real estate industry.
Office market cautious, logistics market clearly on the rise
With a turnover of just over 100,000 square meters, the office market in 2025 did not reach the previous year's level of just under 140,000 square meters, but exceeded the very weak result of 2023 (85,000 square meters). The volume is thus also below the average for the years 2021 to 2025 (125,000 sqm). The prime office rent recorded a significant increase of over €3/sqm to €24.50/sqm compared to 2024. The vacancy rate in the state capital of Hanover rose again moderately from 5.3 percent to 5.8 percent, but significantly less than the average for the larger A and B locations.
By contrast, turnover for logistics and production properties rose significantly in 2025, reaching around 215,000 sqm, after slumping to around 130,000 sqm in the previous year. However, take-up figures are still far below the volumes of the strong years 2018 to 2022, which exceeded 350,000 sqm. As in the previous year, this is mainly due to a lack of transactions by owner-occupiers. Nevertheless, turnover represents an increase of 65 percent over the previous year, while the increase across Germany as a whole was only six percent. As in the previous year, the prime rent for logistics properties in good locations and with third-party usability is €6.40/sqm.
Hanover region real estate market for download
Current trends, data, and facts about the regional real estate market are regularly compiled under the leadership of the Hanover region together with the state capital of Hanover and 31 other partners from the regional real estate industry. The project group is advised by bulwiengesa AG. Continuously updated information on around 120 market-defining projects in the office, logistics, retail, residential, and hotel segments is available online at www.immobilienmarktbericht-hannover.de.
At the Real Estate Arena commercial real estate fair in Hanover (June 10-11, 2026), the three other major submarkets—retail, residential, and hotels—will also be given greater attention and updated.