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.
The distribution by asset class also underlines the new normal: office properties lead the market with 5.7 billion euros , logistics and industry follow with 5.6 billion euros, and the hotel market recovers to 1.9 billion euros. The figures show that capital is available – but investments are only made where the location, use and quality are convincing.
2026 will therefore not be a boom year, but a decisive year. Successful are those who invest selectively, actively manage and put long-term perspectives above short-term timing.
