25.02.2025

REALOGIS rent map: Changes in prime rents for new logistics buildings in Germany

Munich, 25. February 2025 - Realogis - Germany's leading real estate consultancy for industrial and logistics properties and business parks - has analysed the development of 33 logistics markets on the basis of actual, daily updated asking rents* until the end of 2024 and examined the development of prime rents for new-build properties** at the end of 2024 compared to the beginning of the year.

The current Germany-wide Realogis rental price map 2024 provides users of logistics properties such as retail companies, manufacturers and their service providers as well as banks, institutional investors and project developers with transparent information and gives them the best possible orientation for the top 8 locations of Berlin, Hamburg, Düsseldorf, the Ruhr region, Cologne, Frankfurt, Stuttgart and Munich as well as for 25 regional markets.

Significantly slower rental growth across all locations
"On average across all locations analysed, prime rents rose by 2% in 2024, significantly more moderate than in 2023, when the average increase was 11%," explains Stefan Imken, Managing Director of Realogis Immobilien Hamburg GmbH.

A clear upward trend was observed in 2023: 20 of the 33 markets recorded a double-digit percentage increase in prime rents. "In 2024, the picture looks very different. Eleven markets are showing price reductions, another eleven are stagnating at the previous year's level and only eleven markets are showing price increases," says Julian Petri, Managing Director of Realogis Immobilien Frankfurt GmbH.

Only four markets are showing double-digit percentage increases. Bielefeld, Kassel, Erfurt and Regensburg recorded the largest price increases at the upper end of rents for new-build properties:

• Bielefeld with a price premium of 19% to € 7.00/m² (FY 2023: € 5.90/m²)
• Kassel with 17% to € 6.80/m² (FY 2023: € 5.80/m²)
• Erfurt with 13% to € 6.35/m² (FY 2023: € 5.60/m²)
• Regensburg with 13% to € 7.80/m² (FY 2023: € 6.90/m²)

Looking at the increase in prices in the top 8 locations, the average of the upper value for new-build properties is 3%. Berlin is declining, while Düsseldorf, Cologne and the Ruhr region are stagnating.

First and second place are now separated by €4.00/m²
The most expensive new-build logistics location in terms of prime rents at the upper end of the range is still the Munich region at €13.00/m². Within twelve months, the rent of €12.00/m² has risen by 8%.

"The Stuttgart market follows in second place at €9.00/m², having moved up six places from 8th place at the end of 2023 at €8.20/m² and recording a 10% increase in rents," says Joel Adam, Managing Director of Realogis Immobilien Stuttgart GmbH.

"In 2024, the leader in the table, Munich, once again widened the gap between itself and the runner-up: While the difference was still €3.10/m² at the end of 2023, it increased by 29% to €4.00/m² by the end of 2024," comments Nicolas Werner, Managing Director of Realogis Immobilien München GmbH.

The most expensive top logistics location in Munich at €13/m² is now separated from the inexpensive regional location in Zwickau at €5.40/m² by €7.60/m².

"The difference is the result of a variety of factors such as the availability of land, land prices, approval costs, premiums for brownfield developments, for example, financing conditions and availability of properties as well as property characteristics and fittings," explains Bülent Alemdag, Managing Director of Realogis Immobilien Düsseldorf GmbH.

Nuremberg is in third place at €8.90/m², which represents a sideways movement and a drop of one place, followed by Augsburg at €8.50/m² with a likewise lateral development of the price level.

Düsseldorf and Hamburg together are the fifth most expensive markets with unchanged prices of €8.25/m²; they were also equally expensive in the previous year and moved up one place.

Berlin is in seventh place at €8.20/m², down from €8.60/m², with a price drop of 40 cents or -5% at the upper end of the range for new builds (down four places).

Frankfurt, together with Ingolstadt, follows just behind Berlin in eighth place at €8.10/m². While Frankfurt recorded a price increase of 3% and a rise of two places (FY 2023: 10th place with €7.90/m²), Ingolstadt, coming from €8.30/m², suffered a price drop of 2% (down 3 places). In 10th place, with prime rents of €8.00/m², are Cologne (sideways price movement, down one place), Ulm (price increase of 7% and rise of 5 places, FY 2023: €7.50/m²) and Hanover (FY 2023: €7.50/m², price increase of 7%, rise of 5 places).

At € 7.75/m², the Ruhr region continues to be the most affordable market for new builds among all of Germany's top 8 locations. Coming from €7.25/m² at the end of 2023, prices here have risen by 7%. However, this does not lead to a change in ranking: the Ruhr area remains in 17th place and thus in the midfield of all 33 markets.

Most expensive northern markets outside the top 8 locations: Hanover, Bielefeld and Braunschweig:

• With a rent of €8.00/m², Hannover ranks in the top 10 markets for prime rents for new-build properties, recording an increase of 7% (FY 2023: €7.50/m²). The market thus improved by 5 ranks to 10th place.
• At 19%, Bielefeld achieved the strongest rent growth of all the markets analysed. The rent rose from €5.90/m² to €7.00/m², which resulted in a considerable jump of 11 places to 19th place.
• Braunschweig has also become noticeably more expensive: at €6.75/m², the increase is 9% (previously €6.20/m²). Up 3 places to 22nd place.

"Overall, the most expensive regional locations in northern Germany are showing further rental growth. This is also reflected in some significantly higher placements than in the previous year. The price increases are mainly due to the high land purchase prices in the past and the sharp rise in construction costs at the start of construction," comments Christian Beran, Managing Director of Realogis Immobilien Deutschland GmbH.

Most expensive eastern markets outside the top 8 locations: Leipzig, Erfurt and Dresden:

• Leipzig is in 24th place at €6.50/m² (price reduction of 10% coming from €7.25/m² or 17th place) - down 7 places
• Erfurt is in 28th place at €6.35/m² (up 13% from €5.60/m² or 33rd place) - up 5 places
• Dresden is in 29th place at €6.00/m² (price reduction of -3% coming from €6.20/m² or 25th place) - down 4 places

"The eastern German markets recorded particularly significant price reductions in 2024. With the exception of Erfurt, all eastern German markets outside of the top locations saw price drops. On the one hand, construction costs went down, having been the main driver of rising rents in 2023. On the other hand, demand has fallen sharply. The current development could therefore open up new scope for negotiation for prospective tenants," adds Christian Beran.

• Leipzig in particular: -10% to € 6.50/m² (FY 2023: € 7.25/m²)
• Zwickau: -10% to € 5.40/m² (FY 2023: € 6.00/m²)
• Magdeburg: -9% to € 5.65/m² (FY 2023: € 6.20/m²)
• Halle: -5% to € 5.70/m² (FY 2023: € 6.00/m²)
• Dresden: -3% to € 6.00/m² (FY 2023: € 6.20/m²)

Most expensive southern markets outside the top 8 locations: Nuremberg, Augsburg and Ingolstadt

• In Nuremberg, the rent for new-build logistics space remains stable at €8.90/m² and is in third place (down one place).
• In Augsburg, too, the price has not changed at €8.50/m², which continues to secure 4th place.
• In Ingolstadt, the rent fell from €8.30/m² to €8.10/m², which represents a fall of around 2% (down three places).
  
  

As in the previous year, Nuremberg, Augsburg and Ingolstadt are therefore among the ten logistics markets with the highest rent levels for new-build logistics properties in Germany.

Most favourable markets for new builds across all markets: Magdeburg, Hof and Zwickau

• Magdeburg ranks 31st at €5.65/m² (FY 2023: €6.20/m²); price decline of 9% and drop of 6 places
• Hof remains in penultimate place or second cheapest market at €5.50/m² (FY 2023: €5.70/m²); price decline of 4%
• Zwickau is the cheapest market at €5.40/m² (FY 2023: €6.00/m²), the price decline is 10%; drop of 5 positions

Highest price reductions to the upper end of the range for new builds: Leipzig, Zwickau, Magdeburg and Dingolfing

• Leipzig: -10% to € 6.50/m² (FY 2023: € 7.25/m²)
• Zwickau: -10% to € 5.40/m², (FY 2023: € 6.00/m²)
• Magdeburg: -9% to € 5.65/m² (FY 2023: € 6.20/m²)
• Dingolfing: -5% to € 7.30/m² (FY 2023: € 7.70/m²)

Scope for upper and lower rent ranges for new logistics buildings
The Realogis rental price map shows the upper and lower end of the rental price range for new builds depending on various criteria such as location and fit-out.

"Large rent ranges can be an indication of a differentiated product range that differs in terms of property characteristics, fittings and micro-location, for example, and that there are greater negotiating opportunities for occupiers. Low rent ranges, on the other hand, indicate that asking rents for new builds are generally close together. This may be due to the fact that the product range is more homogeneous and does not differ sufficiently to allow for greater price differences and that there are fewer negotiating opportunities for users," says Alexander Ego, Managing Director of Realogis Immobilien Berlin GmbH.

The clearest gap between the lower and upper end of the rental price range for new-build logistics properties was in the Munich market, followed by Berlin, Stuttgart, Hanover and Augsburg:

• Munich: Between the lower and upper values are €4.00/m², which corresponds to an increase of 33% compared to the previous year (FY 2023: €3.00/m²).
• Berlin: had the highest range in the previous year at €3.10/m², currently it is €2.50/m² (-19%)
• Stuttgart: Growth of a significant 80% to € 1.80/m² (FY 2023: € 1.00/m²)
• Hanover and Augsburg are both at € 1.50/m² (Hanover: +25%, coming from € 1.20/m²; Augsburg: stagnating)
   

By contrast, the lowest and highest values of the rental price range for new logistics properties were closest together in Dresden, Hamburg, Zwickau and Wolfsburg (less than one euro per square metre everywhere):

• Dresden: € 0.60/m² (an increase by a factor of 6, previously it was only € 0.10/m²)
• Hamburg: €0.50/m² (a decrease of 33%, starting from €0.75/m², the range here has shrunk further)
• Zwickau and Wolfsburg follow with €0.40/m² each
  • Zwickau: doubling from 0.20 €/m²
  • Wolfsburg previously showed no range at all; the lower and upper values were identical in relation to new logistics buildings, resulting in an absolute increase of €0.40/m²

* the entire Realogis analysis is not based on the evaluation of web offers, but on actual, daily updated asking rents ** According to the Realogis definition, new-build properties for logistics must have a hall height of at least 10 metres, spacious access zones, at least 1-2 gates per 1,000 m² of hall space and efficient heating systems and sprinkler systems. Back