German institutional investors are sticking to real estate as a strategic asset class – but only if they offer a yield advantage over fixed-income investments with low risk. At the same time, the requirements for ongoing distributions remain high. Residential and logistics real estate dominates investment plans. These are the key findings of the Real I.S. Investor Survey 2026, in which more than 80 institutional investors from Germany – insurance companies, pension funds and pension funds as well as banks and savings banks – took part in the first half of 2026.
"The survey confirms our perception from the dialogue with institutional investors. Real estate continues to be valued as an attractive asset class in the long term, especially in view of the ongoing macroeconomic and geopolitical uncertainties. At the same time, investment momentum remains subdued. The changed interest rate and macroeconomic environment, as well as the geopolitical situation, have significantly increased the requirements for returns, product design and risk management – investment decisions are being made more selectively as a result," says Dr. Christine Bernhofer, CEO of Real I.S. AG.
Real estate must offer a clear yield advantage over bonds
Rising bond yields have permanently changed institutional investors' expectations of real estate investments. Almost three-quarters of those surveyed (74 percent) now expect a yield premium of 150 to 250 basis points for core real estate compared to ten-year German government bonds. "Real estate must therefore generate a clear additional return compared to low-risk interest-rate investments in order to remain attractive. This yield premium is the guideline by which the real estate industry must measure itself if it wants to attract institutional money," Tobias Kotz, Global Head of Client Relations & Capital Funding, Real I.S.
