Figures
Germany Residential Market Q3 2026
Higher interest rates weigh on transactions; rental momentum continues
21 October 2026 5 Minute Read
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Residential Investment Market
Transaction Volume
By the end of Q3 2026, Germany’s residential investment market had reached approximately €5.9bn across 49,500 residential units traded, equivalent to about 70% of the volume and 90% of the units recorded for full-year 2025.
After remaining stable since early 2024, the prime yield in the top 7 markets increased by 20 bps in Q3 to approximately 3.6%. The yield on 10-year German government bonds rose more sharply to above 3.6%, possibly due to the federal government’s higher financing requirements and increased bond supply. The yield spread narrowed from 50 to −4 bps, eliminating the yield premium for residential properties in the top 7 markets.