What structural changes are currently shaping the German property market – and how should companies respond? Our experts analyse this in the latest Real Estate Bulletin 1/2026. The main focus: property under stress. This issue highlights the factors that are crucial for investors, financiers, asset managers and project developers, both now and in the future – ranging from increased financing costs and cash flow requirements to due diligence processes and legal options. Readers are provided with a comprehensive overview of a market environment characterised by the transition from a period of low interest rates to a phase of structural adjustment pressure.
The Property Market in 2026: The Current Market Environment
The sector will continue to undergo a period of adjustment in 2026: high refinancing volumes (the ‘maturity wall’), rising interest rates and more selective lending are placing greater demands on cash flows, asset quality and data consistency. At the same time, pressure is mounting due to growing non-performing loan (NPL) portfolios in the commercial segment – that is, loans where interest or principal payments are overdue. This particularly affects the office and retail markets.
Whilst the overall economic conditions are stabilising slightly, the recovery in the transaction market remains subdued. Banks are increasingly demanding robust performance metrics, transparent scenario analyses, and technical and financial valuations. Refinancing capacity is thus becoming a key strategic issue for market participants.
