The German commercial real estate sector faces a looming challenge in the form of refinancing approximately €77 billion in loans, warns CBRE. A significant portion of the €228 billion in loans acquired between 2019 and 2022 is due for refinancing by 2027, posing potential hurdles if market conditions persist.

Additionally, BNP Paribas Real Estate reports a surplus of 6 million square meters of unoccupied office space, with 3.2 million square meters still under construction across key German cities. Delays are expected, particularly as insolvent developers account for nearly half of the ongoing projects.