German Investment Market in Recovery Mode

For the first time since the interest rate turnaround, the German commercial investment market is showing clear signs of stabilisation. After two years of sideways movement, the transaction volume for the first three quarters of 2025 – €16.1 billion – points to a moderate recovery. Both domestic and international investors are taking advantage of the improved market environment to once again seize opportunities.

Special funds in particular are regaining importance: their number has more than doubled within a decade, and their fund assets are rising again after a correction phase. Planned distribution yields of up to 6% underscore the attractiveness of the logistics, residential and healthcare asset classes, which are the focus of new fund structures.

At the same time, the availability of capital from institutional investors is increasing noticeably. By August 2025 alone, €20 billion had been raised for real estate funds across Europe – more than in the whole of the previous year. If this trend continues, 2025 could be the strongest fundraising year since 2021.

Overall, the stabilised interest rate situation, rising capital commitments and attractive risk premiums point to the beginning of an upturn. For 2025 as a whole, we expect a transaction volume of up to €24 billion – with potential for a further increase to €25 to €30 billion in 2026.