The German real estate investment market will show initial signs of stabilisation in 2025 – albeit at a significantly reduced level. With a transaction volume of around EUR 23.2 billion , the market is only at about a third of the peak phase 2019–2021. Interest rate cuts have prepared the ground, but a broad market recovery has failed to materialize.
The increasing selectivity is striking: larger transactions are mainly driven by family offices and private capital , while institutional investors in the core segment continue to act cautiously. Instead, the focus is on value-add strategies, cash flow security and manage-to-ESG potential.
