Transaction volumes for German residential properties* totalled almost €8.1bn in 2025, according to Savills. The international real estate advisor counted 150 transactions, a year on year increase by 13%, while volumes were down by 23%. The prime yield remained stable at 3.6%, which was the same figure as last year's.

Student accommodation and micro-apartments accounted for investment volumes of approximately €261m in 2025, more than three times the transaction volumes recorded in the previous year. With many ongoing processes about to complete, Savills expects strong investment activity in the first quarter of 2026.

Marco Högl, Director and Head of Residential Capital Markets, Savills Germany: “The German residential investment market gained momentum in the final quarter. Overall, the sector has become more fragmented but in no way less active. One striking aspect is how broad the spectrum of transactions has now become. In 2025, we witnessed transactions ranging from new-build developments to value-add properties, both in A-cities and in second and third-tier cities, as well as commuter belts. Sound existing properties and new builds are particularly conducive to successful transactions.” 

* Only properties with at least 50 residential units

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