A market commentary by Jürgen Michael Schick
2025 was a year of stabilisation in the residential investment market. In many cities, purchase prices have levelled off at a new level after the correction phase, and there is also a slight upward trend. For 2026, the signs point to a stable residential investment market with clearly calculable framework conditions and attractive prospects for long-term investors.
The price correction has been completed, the price level has consolidated and a moderate upward trend is beginning in central markets. This picture is drawn by nationwide indices, financing-based evaluations by banks, the apartment building market report and the Schick Residential Investment Barometer.
The data show a stable residential investment market
Prices in the residential investment market have bottomed out and are moving slightly upwards again in many cities. A correction phase has turned into a sideways to upward movement. This is the picture shown by the nationwide German Real Estate Index (GREIX): The previously declining purchase prices for apartment buildings have been stable for several quarters, and the first moderate increases can be seen in the latest development.
Residential investments are also being financed again at higher values. This is indicated by the evaluations by vdp Research. In 2025, the indexed properties financed by banks are well above the levels of the previous year. Rising loan-to-value ratios are a clear signal that the financing institutions are bearing the current price levels and are regaining more confidence in the market.
Market sentiment shows a positive trend
The mood in the market matches the data situation. The majority of investors expect a stable environment and moderate upside potential.
The Schick Residential Investment Barometer (2/2025) shows among 3,000 investors surveyed: More than 80 percent of those surveyed expect prices to remain stable or rise, and the proportion of falling price expectations has fallen significantly. In 2023, concerns about further declines still dominated, but today the assessment that the price correction has been completed prevails.
This development is reflected in discussions with private and institutional investors. Many investors are once again focusing on specific acquisition strategies, selectively examining new exposures and planning for the long term. The focus is on the question of which locations and properties offer the best prospects for the coming years.
Berlin remains a market of opportunity
In this picture, Berlin remains the central reference market. The capital is by far the largest residential investment market in Germany and accounts for around 24 percent of the transaction volume of the 50 most important cities. The potential of the capital is still great. In the Schick Residential Investment Barometer (2/2025), around 60 percent of investors throughout Germany classify Berlin as an attractive investment destination, while population growth is the most important reason for 45 percent. Economic dynamism, internationality and the role as a science and service location reinforce this impression. The political debates are known and part of the calculation, but the quality of the location remains decisive.
The current Berlin Apartment Building Market Report (QIII 2025) confirms this picture. In the third quarter, the transaction volume increased noticeably, with more deals and higher purchase prices. Multi-family dwellings are up significantly compared to the previous quarter, while residential and commercial buildings are also recording an increase. Berlin is thus translating the trends from the indices into concrete market activity.
