In an environment that remains highly uncertain and volatile, activity in the German commercial and residential* real estate market remained subdued at the beginning of 2026. Properties changed hands for approximately €7.8bn during the first quarter, representing a decrease of 5% year on year, according to Savills.  

Karsten Nemecek, Deputy CEO Germany and Head of Capital Markets, Savills Germany, says: “In the short term, the latest conflict may thwart transaction activity since some investors will probably await further developments. At the same time, the renewed increase in interest rates and weaker economic outlook is increasing the pressure to act for those owners who had been hoping for more favourable sale conditions. In the medium term, therefore, the most recent crises could actually significantly increase the number of sales.”

Matthias Pink, Head of Research, Savills Germany, says: “The environment for real estate as an asset class remains challenging. This is also reflected in the buyer structure. Many acquisitions are not driven by yields but are coming from the public sector or owner occupiers. At the same time, the proportion of private investors remains high.” 

Savills baseline scenario for 2026 remains unchanged, anticipating a full year transaction volume in line with the two previous years at approximately €35bn.

* Transactions of at least 20 residential units only 

Graphics and data accompanying this press release can be found on our Online dashboard on the real estate investment market.