In the 1st half of 2026, the transaction volume with residential real estate amounted to around 3.8 billion euros*, according to Savills. Compared to the same period last year, the transaction volume fell by 5%. Savills has registered around 110 transactions, an increase of 20% compared to the previous year. The prime yield remained stable at 3.6% and thus also corresponded to the previous year's figure.
Marco Högl, Director and Head of Residential Capital Markets at Savills in Germany, comments on the market as follows: "The residential investment market was predominantly fragmented in the first half of the year. While the transaction volume was slightly below the previous year's level, the number of transactions was one fifth higher. Properties in the small and medium-sized segment in particular are meeting robust demand, while investors in the three-digit million range continue to act very selectively. The focus is primarily on solid existing properties, with increasing capital available for core-plus strategies. Even simpler portfolios with purchase prices of well below 1,500 euros per m² were quite liquid in the first half of the year and are in demand primarily from opportunistically oriented investors or with a view to manage-to-green approaches. Project development acquisitions continue to take place and accounted for 25% of the transaction volume in the first half of the year. It is striking that more than 80% of the purchase volume for project developments was accounted for by public-sector housing companies. Many core investors, on the other hand, currently prefer modern existing properties. Overall, there is a wide range of products on the market across all risk classes, but it takes time to absorb because transaction processes remain lengthy. The volatile geopolitical and economic environment as well as interest rate developments often complicate pricing and contract negotiations. In any case, the momentum from the beginning of the year has been interrupted by the consequences of the Iran war and has given way to a mixed mood among market participants. For the year as a whole, we expect a transaction volume at the level of the previous year."
Supplementary charts and data related to this press release can be found in our online real estate investment market dashboard.
