Despite the recent slump in the investment market, the German rental housing market continues to offer opportunities for investors – thanks to continued strong tenant demand and a shortage of housing. This entails further rental growth potential and ensures stable and sustainable cash flows.
In the fourth quarter of 2025, the German residential investment market recorded a transaction volume of just under 8.1 billion euros, which corresponds to a decline of 23% compared to the previous year.
Aengevelt sees Defence Properties as a fast-growing segment. With higher defense spending and more Bundeswehr personnel, the need for office, commercial and logistics space is increasing; in some cases up to 30% higher land prices. Opportunities for investors, but strict safety and ESG requirements.
In the first half of 2025, Munich's industrial and logistics real estate market achieved take-up of 44,300 square metres. This was 56 percent below the result of the same period last year.
