RESIDENTIAL INVESTMENT CONTINUES TO RECOVER
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After the first six months of 2025, the volume of residential investments amounted to €4.5 billion. Thus, residential remains the asset class with the highest transaction volume in the German real estate market. A positive indicator of sustained market recovery is the substantial growth of large-scale, nationwide portfolios, including those in the value-add segment. Another sign of significant improvement in market sentiment is the strong commitment of foreign investors, particularly those from the United States, who are once again realizing attractive investment opportunities.
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Overall, the number of transactions in the second quarter decreased slightly from the first quarter. However, the increase in large-volume transactions exceeding €100 million is a positive sign for the market. Despite ongoing economic and geopolitical uncertainties, the German residential investment market is growing in popularity among investors due to healthy demand fundamentals and improved capital availability. This is reflected by the well-filled pipeline of transactions that are likely to be concluded in the coming months and will drive the German residential investment market forward.
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The distribution of the volume by location shows that the stable investment environment of the A cities has recently contributed less to the total transaction volume than in previous years. A cities only account for 33% (Ø10 years: 47%) of total turnover. Berlin remains the top location, with an investment volume of just under €830 million.