According to Savills, Q4 2025 was the strongest quarter for German real estate investment last year with a transaction volume of €9.4bn. However, total volumes for 2025 only reached c. €31.3bn, a decrease of 17% year on year. At approximately €35bn, Savills expects transaction volumes for 2026 to be broadly in line with those recorded over the last two years.

Residential properties* was the biggest sector by transaction volumes (€8.1bn) in 2025, while retail and offices ranked second and third, at c. €6.1bn and €5.6bn, respectively. Logistics assets traded for c.€5.1bn, while investment volumes for senior living and healthcare properties totalled €1.2bn. Prime yields remained largely unchanged in 2025 although initial yields did harden in a few of the top six office markets by a few basis points.

In many sectors, private investors played a significant role as buyers, according to Savills. Overall, private investors, including family offices, accounted for approximately €4.2bn of direct transactions last year, the highest volumes ever recorded for this investor group. However, investment managers remained by far the largest purchaser group with an acquisition volume of approximately €9.3bn and they also accounted for disposals totalling approximately €7.1bn. 

Matthias Pink, Head of Research, Savills Germany, says: “After institutional investors dominated the last cycle, they are playing a significantly smaller role in the current cycle. The higher interest rates and structurally higher risks in some sectors also suggest that they will not regain their previous dominant status during the remainder of this cycle.” Institutional investors’** share of the acquisition volume stabilised at around a third, remaining significantly below the 10-year average of 50%.

Karsten Nemecek, Deputy CEO Germany and Head of Capital Markets, says: “Recent months were a good reflection of 2025. Of the many ongoing transaction processes, only a few resulted in completed sales. Others are either being prolonged or have been aborted. However, we are starting to see potential purchasers and vendors growing increasingly close in their price expectations. The most active sectors for transactions include apartments and small to medium-sized office buildings in the best locations.”

“On the whole, 2026 is likely to remain a buyer’s market, which will create opportunities for investors who can respond flexibly to opportunities that present themselves.” 

* Transactions of at least 50 residential units only / ** Banks, pension funds, sovereign wealth funds, insurance companies and investment managers (excluding private equity firms)

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