Germany Investment Market Q3 2026

The German real estate investment market continued the stabilization process that had begun at the start of the year throughout the first three quarters of 2026. Transaction volume reached €23.2bn and thus marginally exceeded the year-earlier figure, primarily due to a strong first quarter. Overall market activity has remained highly selective, particularly as decision-making processes are taking longer in the current market environment and, given prevailing risk assessments, are subject to more rigorous scrutiny and recalibration.

Despite price adjustments already implemented in many market segments, considerable discrepancies between buyers’ and sellers’ pricing expectations persist. Although sufficient capital is available, particularly from international investors, it is only being allocated where pricing is deemed appropriate from an investor perspective. At the same time, higher alternative yields are increasing institutional investors’ distribution requirements and thereby adding further pressure on acquisition prices. Against this backdrop, further market adjustments appear likely. Consequently, the stabilization of the investment market has been driven primarily by the advanced stage of price discovery and a greater product supply, although momentum slowed noticeably in the third quarter as a result of heightened geopolitical uncertainties and significantly higher financing costs.