01.09.2023

REALOGIS analyses development of new logistics properties in latest rental map for H1 2023

• Top 8: Munich remains the most expensive location for new logistics properties
• Regional markets: Upper end of the rent range is highest in Nuremberg, Karlsruhe and Hanover
• Ranking: Last twelve months’ climbers are Nuremberg, Hanover and Bremen
• Highest growth in Nuremberg and Leipzig, followed by eight markets with a rent increase of over 20%
• Rent increase of 14.3% across all markets analysed
• Gap between highest and lowest rent averages around EUR 1/m²

Munich, 1 September 2023 – Realogis – Germany’s leading property consulting company for industrial and logistics properties and business parks – has examined the eight most important top logistics markets, namely Berlin, Hamburg, Düsseldorf, the Ruhr region, Cologne, Frankfurt, Stuttgart and Munich, as well as 25 regional markets and analysed the change in prime rents for new builds compared with H1 2022.

Realogis’ analysis is based on actual up-to-date rents offered by owners in the 33 key logistics markets in Germany – and not on an evaluation of online adverts. “The Realogis rental map is therefore a good indicator for institutional and private investors, project developers, banks, and renters and owner-occupiers in the logistics, commerce and manufacturing sectors,” explains Bülent Alemdag, Managing Director of Realogis Immobilien Düsseldorf GmbH and responsible for investment business throughout Germany.

Top 8: Munich remains the most expensive location for new logistics properties Munich remains the most expensive location for new logistics properties among the top-eight markets according to the upper figure of the rent range. Thanks to a 23.7% increase to EUR 10.50/m², Munich is the only market to exceed EUR 10, compared with EUR 8.50/m² in the first half of 2022, and has thus extended its lead.

Among all 33 markets, Stuttgart and Hamburg follow in joint third place with EUR 8.00/m² (H1 2022: EUR 7.30/m² or +9.6%; EUR 7.50/m², +6.7%). The Berlin market comes in sixth at EUR 7.80/m², up from EUR 7.50/m² (+4%). Frankfurt is in seventh at EUR 7.60/m² (H1 2022: EUR 7.30/m², +4.1%). Düsseldorf follows in eighth place at EUR 7.50/m² (H1 2022: EUR 7.00/m², +7.1%). Cologne is in 14th place at EUR 7.35/m² (H1 2022: EUR 6.85/m², +7.3%). Last among the top eight is the Ruhr region at EUR 6.50/m², up from EUR 5.95/m² (+9.2%), currently in 18th place. Regional markets: Upper end of the rent range is highest in Nuremberg, Karlsruhe and Hanover
“Outside the top eight, Nuremberg, Karlsruhe and Hanover are the most expensive markets in terms of the upper figure of the range of rents for new builds,” says Florian Stork, Managing Director of Realogis Immobilien Deutschland GmbH. Nuremberg is currently in second place (up ten places) at EUR 8.90/m², up from EUR 6.80/m² (+30.9%). Karlsruhe is fifth at EUR 7.90/m², up from EUR 7.00/m² (+12.9%), and Hanover is in eighth place at EUR 7.50/m², up from EUR 6.00/m² (+25%).

The costliest eastern market is Leipzig in 23rd place at EUR 6.20/m² (H1 2022: EUR 4.80/m², +29.2%). “This important regional logistics location has climbed four places compared with the previous year but is still in the bottom third of the overall market ranking,” says Christian Beran,Managing Director of Realogis Immobilien Deutschland GmbH.

The least expensive markets can be found in the north and east: Erfurt in 30th place at EUR 5.60/m² (H1 2022: EUR 4.50/m², +24.4%), Wolfsburg, Magdeburg and Halle in joint 31st place at EUR 5.50/m² (H1 2022: EUR 5.20/m² or +5.8% and Magdeburg and Halle up +22.2% from EUR 4.50/m² in H1 2022).

Ranking: Climbers in the last twelve months In terms of the upper figure of the rent range for new logistics properties, Germany’s highest climbers year on year are as follows:

• Nuremberg: +10 places (currently 2nd place, up from 12th)
• Hanover: +8 places (currently 8th place, up from 16th)
• Bremen: +6 places (currently 18th place, up from 24th)
• Mainz/Wiesbaden: +5 places (currently in joint 8th place with Hanover, up from 13th)
• Leipzig: +4 places (currently 23rd place, up from 27th)

Highest growth in Nuremberg and Leipzig, followed by eight markets with a rent increase of over 20%
Realogis observed the highest growth in the upper end of the rent range for new builds across all 33 markets in Nuremberg and Leipzig.

In another eight markets, the upper figure of the rent range for new builds increased by more than 20%. These include:

• Nuremberg with +30.9% to EUR 8.90/m² (2nd place), up from EUR 6.80/m² (12th place) – considerable 10-place climb
• Leipzig with +29.2% to EUR 6.20/m² (23rd place), up from EUR 4.80/m² (27th place)
• Bremen with +27.5% to EUR 6.50/m² (18th place), up from EUR 5.10/m² (24th place)
• Zwickau with +26.1% to EUR 5.80/m² (26th place), up from EUR 4.60/m² (28th place)
• Hanover with +25% to EUR 7.50/m² (8th place), up from EUR 6.00/m² (16th place)
• In another eight markets, the upper figure of the rent range increased by more than 10%. In eleven markets, the growth was less than 10%.

Realogis did not observe a decline in the upper end of the rent range for new builds in any market (excluding Osnabrück and Hof, which were not analysed in H1 2022). The figure stagnated only in Augsburg (EUR 7.50/m²) and Heilbronn (EUR 6.50/m²).

Rent increase of 14.3% across all markets analysed “In the first half of this year, the upper figure of the range of rents for all new builds across all markets grew by a considerable 14.3% compared with the same period of last year,” reports Stefan Imken, Managing Director of Realogis Immobilien Hamburg GmbH.

This analysis is based on 32 markets, excluding Osnabrück and Hof, where no figures were recorded for the previous year (Göttingen was not analysed due to a lack of deals in H1 2023).

Ranges average EUR 1/m²
The widest gap between the most and least expensive new build for rent on all markets analysed was found in the Nuremberg logistics market. At EUR 2.90/m², the range for new builds in Nuremberg is ahead of Berlin in second place with EUR 2.30/m² as well as the average for all markets of EUR 1/m². In the same period of the previous year, Berlin still had the biggest gap at EUR 3/m². Back