ENERGIZING
REAL
ESTATE

The energy market in 2026 remains strategically important for the real estate industry. In July, forward prices for power and gas increased significantly, particularly in near-term delivery periods. For asset managers, property managers, residential real estate companies and institutional investors, the key question is how current market conditions affect energy budgets, operating costs, NOI and portfolio procurement strategies.

Delivery year 2027 is currently highly sensitive to geopolitical developments. After a sharp rise, prices pulled back markedly — yet uncertainty stays high. For real estate portfolios the point is not to catch the perfect buying day, but to be tender-ready and decision-ready the moment a market window opens.

Das Gebäudemodernisierungsgesetz (GModG) ersetzt das bisherige Gebäudeenergiegesetz und erweitert die Wahlmöglichkeiten beim Heizungstausch. Für Eigentümer und Verwalter wird die Entscheidung dadurch jedoch nicht automatisch einfacher: Neben Investitionskosten müssen künftig stärker die langfristigen Kosten und die Verfügbarkeit von Gas, Biomethan, Bioöl, Strom und Fernwärme berücksichtigt werden.

For many real estate owners and asset managers, energy procurement remains one of the least transparent cost drivers. Market movements are complex, procurement timing is difficult, and strategic decisions are often based on limited market visibility. With our regular Energy Market Updates, we aim to simplify the latest developments and translate market data into practical insights for real estate professionals.

Geopolitics as the Key Price Driver The first quarter of 2026 marked a turning point for global energy markets, driven largely by escalating geopolitical tensions in the Middle East. The outbreak of the Iran conflict at the end of February triggered sharp reactions across oil, gas, and electricity markets. A central pressure point has been the Strait of Hormuz, a critical transit route for roughly one fifth of global oil supply.

After the energy crisis triggered by Russia’s invasion of Ukraine was widely seen as largely under control, developments on the energy markets in early March have once again highlighted how fragile the situation remains. The war involving Iran in the Middle East has pushed oil and gas prices sharply higher within a short period of time. At the same time, it is still unclear how long this situation will last and what further impact it may have on procurement markets.

Geopolitical Tensions Reshape Global Energy Flows The latest escalation in the Middle East is once again exposing the fragility of global energy systems. Attacks on infrastructure and rising risks around key transport routes such as the Strait of Hormuz are tightening supply expectations. While physical disruptions remain limited so far, the market is already reacting to the increased probability of supply shocks.

The public debate around rising costs in the real estate market continues to focus heavily on rent levels. However, this perspective falls short. To truly understand cost pressure across the market, a broader view is required. The strongest dynamics are not coming from net rents, but from operating costs. A closer look at the housing market—as illustrated by long-term data—makes this clear: the so-called “second rent” has become the real cost driver.

The switch to renewable energies is a key lever for reducing CO₂ emissions and is becoming increasingly important for companies and real estate portfolios. Green energy products make it possible to make your own energy procurement more sustainable and to meet regulatory and ESG-related requirements. At the same time, the available options vary considerably in terms of impact, price and long-term benefits.

Energy procurement and trading today take place in an environment of high volatility, geopolitical risks and rising cost pressures. Companies with electricity and gas contracts, as well as market participants in the spot, futures or OTC markets, face the challenge of mastering not only market mechanics and fundamentals, but also decision-making psychology. Panic in illiquid market phases, fear of making wrong decisions or exaggerated expectations can lead to energy being p

The year 2025 has shown that the energy transition in the electricity market is failing less due to a lack of new power generation and increasingly due to systemic limitations. After a period of declining prices, average electricity costs have risen again. At the same time, the expansion of renewable energies has slowed, while the demands on grids, flexibility, and controllability have increased significantly.