“In the majority of the 33 markets, 20 markets to be exact, prime rents are rising by double-digit percentages. Five of these markets have even risen by more than 20%,” noted Stefan Imken, Managing Director of Realogis Immoblien Hamburg GmbH.

“Looking at the price hikes for only the top 8 locations, the average increase in the maximum level for new-build properties is 9.1%. This tells us that the regional markets have become more expensive on average than the top locations,” said Nicolas Werner, Managing Director of Realogis Immobilien München GmbH.

Hanover: Rental price increase of +25%

The greatest rent increases at the upper end of the new-build property market were seen in Hanover, Mannheim, Ulm, Magdeburg, and Leipzig:

• Hanover with 25.0% to EUR 7.50/m² (2022: EUR 6.00/m² – up by 5 places)
• Mannheim with 23.4% to EUR 7.90/m² (2022: EUR 6.40/m² – up by 8 places)
• Ulm with 23.0% to EUR 7.50/m² (2022: EUR 6.10/m² – up by 4 places)
• Magdeburg with 21.6% to EUR 6.20/m² (2022: EUR 5.10/m² – up by 8 places)
• Leipzig with 20.8% to EUR 7.25/m² (2022: EUR 6.00/m² – up by 3 places)

However, prime rents have stagnated in Hof and Kassel. In Hof, the prime rent remained at the previous year’s value of EUR 5.70/m² (31st place, coming from 24th place), while in Kassel, it remained at EUR 5.80/m² (also 31st place, coming from 23rd place). The prime rent in Regensburg fell by 0.7% to EUR 6.90/m² (2022: EUR 6.95/m²; down by 8 places).

Three local markets ahead of six top locations
Of special note is the double-digit price increase in prime rents for new logistics buildings in southern Germany. According to a Realogis analysis, the most expensive new-build logistics location in terms of prime rents (top end of the range) at the end of 2023 is still Munich at EUR 12.00/m² (coming from EUR 10.50/m²).

Nuremberg follows well behind by EUR 3.10/m² as the second-most-expensive market at EUR 8.90/m², where prime rents have risen by 11.3% year-on-year. The capital city market Berlin ranks third with EUR 8.60/m² (coming from second place with EUR 8.50/m², or +1.2%). Augsburg comes in 4th place with EUR 8.50/m² (coming from 7th place or EUR 7.50/m², or +13.3%) and Ingolstadt in 5th place with EUR 8.30/m² (also formerly 7th place with EUR 7.50/m², +10.7%).

This means that one top location (Munich) and three regional markets (Nuremberg, Augsburg and Ingolstadt) were ahead of the top-six German locations as of the end of 2023:

• Dusseldorf and Hamburg are tied for 6th place at EUR 8.25/m² each (coming from 10th place at EUR 7.15/m², or a price increase of 15.4%, and from 5th place with EUR 7.80/m², or a price increase of +5.8%, respectively)
• Stuttgart is close behind in 8th place at EUR 8.20/m², coming from 3rd place at EUR 8.00/m² (+2.5% price increase)
• Cologne follows with a gap of EUR 0.20/m² and EUR 8.00/m² in 9th place after Stuttgart, coming from 11th place with EUR 7.00/m² (+14.3%)
• In terms of the top markets, Frankfurt is the second-cheapest top location in the upper value of the rental price range for new buildings at EUR 7.90/m² or 10th place, coming from EUR 7.30/m² or 9th place (+8.2%)

“The most-favourable top market in Germany in terms of the upper level of the rental price range for new-build properties is the Ruhr region,” said Bülent Alemdag, Managing Director of Realogis Immobilien Düsseldorf GmbH. The Ruhr region ranks 17th with EUR 7.25/m² (coming from 14th place with EUR 6.50/m², +11.5%).

Ranking of regional markets
The most-expensive northern markets outside the top locations are Hanover, Osnabrück, Bremen and Wolfsburg:

• Hanover is currently in 15th place with EUR 7.50/m², coming from 20th place with EUR 6.00/m² (+25%)
• Osnabrück is in 22nd place with EUR 6.60/m² (coming from EUR 5.70/m² or 24th place, +15.8%)
• Bremen is in 23rd place together with Wolfsburg with EUR 6.50/m²
  • Bremen came from EUR 5.70/m² or 24th place (+14%), and
  • Wolfsburg from EUR 5.50/m² or 27th place (+18.2%)

The most-expensive eastern markets outside the top locations are Leipzig, Dresden, Magdeburg, Zwickau and Halle:

• Leipzig is in 17th place with EUR 7.25/m² (coming from EUR 6.00/m² or 20th place +20.8%)
• Dresden and Magdeburg are in 25th place with EUR 6.20/m²
  • Dresden came from EUR 5.50/m² or 27th place (+12.7%), while
  • Magdeburg came from EUR 5.10/m² or last place in the previous year (+21.6% – up 8 places)
• Zwickau ranks 28th together with Halle at EUR 6.00/m²
  • Zwickau moved from EUR 5.30/m² or 30th place (price increase of 13.2%)
  • Zwickau and Halle were also on par in the previous year, hence the identical development

Of all 33 logistics markets for new buildings at the upper end of the rental price range, Hof, Erfurt and Kassel were the most favourable markets in 2023:

• Kassel with EUR 5.80/m² (stagnation) in 31st place
• Hof with EUR 5.70/m² (stagnation vs 2022) in 32nd place
• Erfurt with EUR 5.60/m² (+7.7 % coming from EUR 5.20/m²) in 33rd place

* According to the Realogis definition, new-build logistics properties must have a hall height of at least 10 metres, spacious access zones, at least 1 or 2 gates per 1,000 m² of hall space, and efficient heating systems and sprinkler systems.

REALOGIS media contact:
Silke Westermann
Senior public relations specialist
Tel: +49/211/53 88 3-440
e-mail: s.westermann@shcommunication.de

REALOGIS company contact:
REALOGIS Holding GmbH
Silja Schuppler
Marketing
Rundfunkplatz 4, 80335 Munich
Tel: +49/89/51 55 69 17
e-mail: s.schuppler@realogis.de
www.realogis.de

REALOGIS. No. 1 for industrial and logistics properties

The REALOGIS Group is Germany’s leading player for the consulting and brokering of industrial, logistics and commercial properties. Founded in 2005 as a pioneer for the asset class of logistics and industry, the owner-operated group has enjoyed healthy growth, is crisis-resistant and knows the German market like no other. In 2022 Realogis generated nearly 1.25 million m² of usable space alone in the letting segment (preliminary result). The net commission revenue of all services in the financial year 2022 are EUR 22.74 million (preliminary result).

In 2021, REALOGIS also won the German Real Estate Prize in the “Commercial Player” category, which honours companies for their outstanding commitment, creativity, innovative strength and sustainability.

Realogis is represented in the country’s seven top logistics locations of Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Leipzig, Munich and Stuttgart, while a dedicated organisational unit ensures transparency in around 15 additional regional logistics markets. 70 real estate professionals advise national and international companies from the fields of logistics, e-commerce, retail and industry as well as private and institutional investors. Quick, flexible, regional, customer-oriented and with a high volume of transactions.

REALOGIS four core competencies are arranging highly creditworthy tenants for new and existing properties, assisting investors with property investments and project development of greenfields and brownfields, outstanding service for locating or selling sites, and the development and implementation of holistic property strategies.

In short, REALOGIS creates more room for its customers’ success in every sense. Further information: https://www.realogis.de/