MARKET COMMENTARY JULY 2026
A market commentary by Jürgen Michael Schick
The residential investment market currently offers buyers who are eligible for financing more leeway than they did just a few months ago. Some investors are checking longer or waiting because the further development of interest rates and the geopolitical situation are difficult to assess. At the same time, housing stock remains easily affordable.
This results in a market phase that cannot be measured by the number of purchases alone. The selection of suitable properties is comparatively large, while fewer buyers compete with each other for individual houses. Those who can decide today therefore have a better chance of being concluded.
More choice meets less competition
For individual properties, we often see three serious buyers in the process today, where a few months ago there were four or five. A transaction is also concluded with three interested parties who are able to finance and are ready to conclude. This increases the chance for each individual to get a chance.
For buyers, therefore, it is not only how many houses are sold in the overall market that counts. The decisive factor is how many other interested parties want to acquire exactly the property they are interested in. The smaller this circle is, the better the starting position of the buyer.
What this means for the overall market
Applied to the market as a whole, this means that the number of purchase cases is expected to remain stable. No decline in sales can be derived from fewer interested parties per property. Sales are also made with a smaller circle of serious interested parties. We therefore expect a constant number of trades over the year.
What is changing is the character of the market. The time and competitive pressure for good properties is easing. Buyers can vet more carefully, clearly state their terms, and focus on homes that fit their buying strategy. This distinguishes the current phase from market phases, in which numerous bidders fought for every good property.
The ability to act becomes an advantage
The advantage lies with buyers who have clarified their financing and know what they are looking for. Good apartment buildings remain in demand. At the same time, access is better today, and negotiations can be conducted with less interference.
Some market participants are waiting for the framework conditions to become clearer again. As these buyers return, competition for good homes will also increase.
The attentism of some becomes the competitive advantage of others. If you can buy today, you shouldn’t wait until five interested parties are sitting at the table again.
