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Our team of real estate analysts has evaluated the data for the second half of 2023. The most striking result of the current analysis is the unprecedented decline in construction starts in the past six months. With only 5 million square meters under construction across Germany in the third and fourth quarters of 2023, we recorded a decline of almost 23% compared to the first half of 2023.
The decline in project space is particularly significant in most segments, with the exception of logistics and industry as well as the other category (such as senior living). The effects of the crisis are clearly noticeable in the market for project developers. Office projects are particularly affected, with a nationwide decline of 7%.
In the residential segment, which is also the most socially relevant and has the second-largest project volume at 1.4 million square meters, we are seeing a drastic decline of almost 29% compared to the first half of 2023.
For this report, we analyzed projects that are planned, under construction or already completed by 2027. In our interactive analysis tool, users can, for example, obtain information on how much retail space is currently being developed, who the largest residential developers in North Rhine-Westphalia are or where the pipeline is currently growing.
We constantly carry out a thorough evaluation of the data in order to assess the current situation on the German project development market as a whole as a seismograph. This also speaks for the fact that we have been the undisputed market leader in the investment real estate sector for over 30 years with a complaint rate of less than 0.1%. That is unbeatable on the German real estate market.
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Kind Regards
Matthias Holzmann
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