According to Savills, the transaction volume for residential property from January to the end of September 2026 totalled around 5.8 billion euros*. Compared with the same period last year, the transaction volume fell by 5 per cent. Savills recorded around 170 transactions, representing a 20 per cent increase on the previous year. The prime yield rose by 10 basis points to stand at 3.7% at the end of the third quarter. This was the first rise in the prime yield in three years.
Marco Högl, Director and Head of Residential Capital Markets at Savills in Germany, comments on market developments as follows: “Residential property remained the property sector with the highest transaction volume on the German property investment market in the third quarter. However, both the number of transactions and the transaction volume were below the figures for previous quarters. Although the recent short-term rise in interest rates and ongoing geopolitical uncertainties are weighing on market sentiment, we have not yet observed any noticeable shock on the part of buyers or sellers. Ongoing transactions have largely continued, and investor demand has so far remained stable. Numerous bidders remain active, particularly in the small and medium-sized market segments. At the same time, supply is showing an upward trend. These often involve portfolio restructuring, with owners specifically selling off those assets that currently offer the best chances of being sold and can help generate liquidity. Many owners have now realised that interest rates are unlikely to fall in the short term and are increasingly willing to make the necessary price adjustments. Against this backdrop, market activity could increase in the coming quarters. However, the decisive factor will be whether the demand side can absorb the growing supply. Should a significant supply surplus emerge, capital values could come under pressure following a prolonged period of stability. In addition, many investors are now factoring in more conservative rent increases than in recent years – a factor which has so far made a significant contribution to stabilising values.”
* Only transactions involving at least 20 residential units.
