Credit: GRI InstituteGerman Real Estate Asset Class Outlook - Exclusive GRI Report
Key takeaways from Deutsche GRI 2025 on what’s next for Germany’s residential, office, retail, hospitality, and logistics sectors
July 18, 2025Real Estate
Written by Rory Hickman
As Germany's real estate market grapples with macroeconomic shifts, rising construction costs, and evolving investor sentiments, the GRI Institute's German Real Estate Asset Class Outlook H2 2025 report presents expert analysis on the key opportunities and challenges across multiple asset classes.
In this exclusive report, compiled from discussions at Deutsche GRI 2025, over 120 top-tier investors, lenders, and developers active in Germany assess the pulse of the country's real estate market, exploring what lies ahead in both residential and commercial sectors.
Offices - Despite a selective investment approach, demand for high-quality office spaces in key urban centres continues to rise. However, secondary and tertiary markets face increasing challenges. The report delves into the long-term viability of non-core assets and emerging opportunities for asset repositioning and property conversions.
Retail - Post-COVID recovery is underway, but the retail sector still faces disruptions, with supply chain issues and evolving consumer habits. We examine the resilience of grocery-anchored retail and the rise of mixed-use developments, offering insight into how landlords are adapting to changing demands.
(GRI Institute)
Hospitality - The hospitality sector is seeing significant shifts in demand and M&A activity. Our report looks at the growing trend of hotel repositioning, particularly in markets impacted by the pandemic, and the rise of branded residences as a solution to the challenges faced by the luxury market.
Logistics - With a focus on secondary locations and evolving market dynamics, we highlight the growing demand for logistics space and the impact of sustainability on the sector. The integration of data centres into logistics operations is emerging as a trend, particularly in Germany.
This comprehensive GRI Institute report offers a crucial overview of how each sector is poised for the remainder of 2025, providing investors with the insights needed to navigate Germany’s complex and ever-changing property market.
Access the full report below:
As Germany's real estate market grapples with macroeconomic shifts, rising construction costs, and evolving investor sentiments, the GRI Institute's German Real Estate Asset Class Outlook H2 2025 report presents expert analysis on the key opportunities and challenges across multiple asset classes.
In this exclusive report, compiled from discussions at Deutsche GRI 2025, over 120 top-tier investors, lenders, and developers active in Germany assess the pulse of the country's real estate market, exploring what lies ahead in both residential and commercial sectors.
(GRI Institute)
What’s in the report?
Residential - Investment activity is showing cautious optimism, with a growing focus on core-plus and value-add strategies in high-demand areas. We explore how the shift in capital flows is impacting the market, particularly in prime locations and emerging regions like Eastern Germany.Offices - Despite a selective investment approach, demand for high-quality office spaces in key urban centres continues to rise. However, secondary and tertiary markets face increasing challenges. The report delves into the long-term viability of non-core assets and emerging opportunities for asset repositioning and property conversions.
Retail - Post-COVID recovery is underway, but the retail sector still faces disruptions, with supply chain issues and evolving consumer habits. We examine the resilience of grocery-anchored retail and the rise of mixed-use developments, offering insight into how landlords are adapting to changing demands.
(GRI Institute)Hospitality - The hospitality sector is seeing significant shifts in demand and M&A activity. Our report looks at the growing trend of hotel repositioning, particularly in markets impacted by the pandemic, and the rise of branded residences as a solution to the challenges faced by the luxury market.
Logistics - With a focus on secondary locations and evolving market dynamics, we highlight the growing demand for logistics space and the impact of sustainability on the sector. The integration of data centres into logistics operations is emerging as a trend, particularly in Germany.
This comprehensive GRI Institute report offers a crucial overview of how each sector is poised for the remainder of 2025, providing investors with the insights needed to navigate Germany’s complex and ever-changing property market.
Access the full report below: