GERMANY Law and Practice Contributed by: Wolfram H. Krüger, Barbara Rybka, Markus Wollenhaupt and Alexander Zitzl, Linklaters
Linklaters LLP Taunusanlage 8 60329 Frankfurt Germany Tel: +49 69 71003 0 Fax: +49 69 71003 333 Email: info@linklaters.com Web: www.linklaters.com
1. General 1.1 Main Sources of Law The main source of real estate law is the Civil Code ( Bürgerliches Gesetzbuch ). Of further relevance are: • the Land Registration Act ( Grundbuchordnung ); • the General Terms and Conditions for Building Contracts (VOB/B); • the Mandatory Fee Structure Regulation for Archi - tects and Engineers (HOAI); • the Federal Building Code ( Baugesetzbuch ); • the Federal Land Use Ordinance ( Baunutzungsver- ordnung ); • the 16 states’ individual building regulations ( Landesbauordnungen ); • the Notarisation Act ( Beurkundungsgesetz ); • the Heritable Building Right Act ( Erbbaurechtsge- setz ); and • the Condominium Act ( Wohnungseigentumsge- setz ). 1.2 Main Market Trends and Deals In 2025, the annual investment in the German real estate market remained subdued. Total investment volumes reached approximately EUR31.3 billion, with residential the largest sector at EUR8.1 billion. The insolvency wave began to slow, with lenders more willing to negotiate restructurings. The new coali - tion government signalled a more pro-development stance with faster permitting, planning reform and fresh depreciation incentives.
The real estate transactions with the highest volumes in 2025 included the takeover of the Porta-Portfolio by XXXLutz, the sale of the Gropius Passagen Shop - ping Centre in Berlin, and various residential portfolio transactions. Data centres accounted for approximately EUR1.2 billion of 2025 transaction volume, mainly in Frank - furt and Berlin. Demand for data centres and pow - ered land is driven by digitalisation and AI, with com - puting capacity expected to double by 2030. At the same time, strict regulatory requirements, limited grid capacity and site scarcity remain key challenges. AI is increasingly used in property management, valu - ation, due diligence and ESG monitoring, while block - chain and tokenisation remain niche. Alternative lenders continued to fill the gap left by cau - tious banks, with debt funds, whole loans and mezza - nine structures now common. Refinancing accounts for a big part of expected financing demand and restructuring activity is expected to increase, particu - larly in office and retail.
1.3 Proposals for Reform Building Modernisation Act (Gebäudemodernisierungsgesetz)
On 24 February 2026, the federal government pre - sented key proposals for a new Building Modernisa - tion Act to replace the Buildings Energy Act (“Heating Act”). The central change is the abolition of the “65 per cent rule” which previously required any newly installed heating system to be operated using at least 65% renewable energy, so owners will be free to
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