Megatrend Deglobalization: New Demands, New Opportunities

Since the 2008 financial crisis, international trade linkages have shown little further growth, while protectionist measures have steadily increased. The era of unchecked globalization has come to an end. Instead, globalization is evolving into a new phase—characterized by selective trade flows and a partially fragmented economic landscape. This shift is also reshaping the framework conditions for the real estate industry.

The change is most visible in the industrial and logistics sectors. Production and supply chains are moving closer to end consumers. This process of nearshoring is strengthening locations in Germany and across Europe, driving sustained demand for warehouses, manufacturing facilities, and distribution centers.

Data centers on the rise

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Data centers are also among the winners of deglobalization. Companies are increasingly relying on EU-based hosting to ensure digital sovereignty. Alongside major hubs, edge locations beyond large internet nodes such as Frankfurt am Main are gaining importance. For investors, this is creating new opportunities in a rapidly expanding market.

Conversely, there is a growing likelihood that foreign direct investment in Germany will decline. This would primarily impact office demand in Germany’s gateway cities such as Frankfurt, Munich, and Berlin. As international companies become more selective in their market engagement, demand is increasingly shifting toward domestic and European players.

Conclusion

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For portfolios, the megatrend of deglobalization calls for strategic realignment. The focus is shifting toward assets and locations aligned with resilience and domestic demand. Those who adapt their strategies accordingly will be well positioned to thrive—even in a more fragmented global environment.