Greif & Contzen Immobilien published a new report about Bonn’s office space and property investment market. The report comprises an analysis of the market to date, as well as highlighting existing potential.

Bonn’s property market benefited considerably from an increase in demand for space from public sector users in recent years. Large new office buildings were pre-let, constructed and sold. There are still some public facilities that require new office units, among other reasons to be able to reduce carbon emissions and comply with the ESG guidelines. However, the number of these prospective occupants has gone down. Large-scale transactions are therefore occurring less frequently, and the market is characterised by small to medium-sized deals in established submarkets.

Bonn’s office space market: private-sector users are gaining importance as a demander group
Owing to a considerable decrease in demand for space from the public sector, the record take-up figure achieved in 2024 – when three units in the five-figure square meter range were taken up – could not be matched in 2025. A total of only around 60,000 m² were taken up, this is the lowest figure recorded in the past 15 years. Following a number of years in which the market had been dominated by the public sector, this user group accounted for only around 30% of take-up. There are a number of reasons for this development: many users who needed new office space have by now taken up suitable units, less office space is required due to people working from home and desk-sharing arrangements, and there is also a trend towards occupants realising solutions in their existing premises. However, there are some market segments in which positive development could be observed in 2025 after all: at around 45,000 m², the total of space accounted for by units in the 1,001 to 10,000 m² segment was twice as high as in the year before. Take-up of space more than doubled in the Bundesviertel neighbourhood, and more than half of all space taken up was located there. The vacancy rate increased slightly to about 3.5%. This is still low, even if prospective tenants needing space at short notice are by now able to choose from a greater number of existing units compared to previous years. The prime rent decreased from EUR 25.75/m² to EUR 23.50/m² and was therefore still slightly higher than the 2023 figure. The average rent dropped from EUR 18.80 to EUR 17.30. The market report includes a map of submarkets with information about the benchmark rents typically obtained in different parts of Bonn.

IInvestment market: residential properties, top-quality office buildings, good locations and development potential attract high demand
Investments across all real estate segments rose by some 17% in 2025, from around EUR 1.2 billion to about EUR 1.4 billion. The number of apartment buildings and condominiums traded increased. Bonn’s housing market continued to be attractive for owner-occupiers, housing associations, private and institutional investors alike. Commercial properties for a total of around EUR 149 million changed hands. Among these were the new West.Side Ember office building in Endenich and existing buildings in the city centre. The latter included a number of retail buildings, leading to a year-on-year increase in transactions concerning retail properties. A considerable decrease could be observed in the area of office properties. 2024 had been characterised by a large-scale transaction in the three-digit million euro range. An overall decline in commercial real estate investments by some 35% was recorded as a result. Investment activity in the commercial property segment has been reflecting a differentiated approach of investors, who have been focusing on stable to rising rental income in particular. Buyers can still be found for new builds with creditworthy tenants and long rental terms. Unlike in previous years, older existing buildings do by now need to be favourably located and offer good development potential through refurbishment or conversion to win over prospective buyers.

Outlook: higher take-up of office space and careful selection by investors
Owing to the overall economic situation, it is unlikely that there are going to be any considerable external stimuli for demand for office space or the investment market. The German economy continues to be affected by a number of structural issues. While higher government spending has been supporting economic development, rising energy costs in connection with the Iran war have already begun to affect economic growth and business sentiment. Demand for smaller to medium-sized office units remains solid in Bonn’s market, nevertheless. In addition, there are a number of prospective occupants looking for large units, and take-up of space is therefore expected to be higher than in the year before. The financing environment remains tense in the investment market. Mortgage interest rates are likely to increase rather than decrease. Demand for condominiums and apartment buildings will remain strong in Bonn, owing to the housing shortage. Top-quality new office buildings with reliable rental income will also continue to attract investors. However, investors are rather sceptical concerning older office buildings in less popular locations that require modernisation. Purchasing prices for this type of building are therefore expected to decrease further. Existing commercial properties in good locations that can generate significantly higher rental income following refurbishment or conversion are meanwhile still likely to be picked up by buyers who specialise in this field.