MARKET RECOVERY IN RESIDENTIAL INVESTMENTS CONTINUES
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After the first three quarters of 2025, the volume of residential investments amounts to €6.3 billion. Thus, after nine months, residential remains the top-performing asset class in the German real estate market in terms of investment volume. The improved sentiment is supported by forward deals, which have gained in importance. Additionally, the increased weight of large-volume existing portfolios and renewed interest in the value-add segment are contributing to the sustained market recovery.
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The registered investment volume declined moderately in the third quarter compared to q1 and q2. This decline is primarily due to a lack of supply, particularly in the large-volume segment above €100 million, rather than a slowdown in demand. Nevertheless, the increased transaction frequency in the third quarter is a positive market indicator. Additionally, the very good deal pipeline is likely to push the German residential investment market in the coming months.
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In the first half of the year, A-cities were underrepresented in the distribution of investment volume due to a high proportion of nationwide portfolios. However, they grew disproportionately strongly in the third quarter, reaching €2.4 billion. Berlin contributed significantly to this growth with a transaction volume of nearly €1.5 billion. The substantial growth in investment volume in the German capital last quarter was primarily driven by forward deals.