- Residential property transaction volume in Q1–Q3 2025 at €5.84 billion
- 2 per cent above the previous year's figure for Q1–Q3 2024
- 3.80 per cent prime yield – stability compared to the previous quarter
Cushman & Wakefield, a global real estate consultancy, recorded a transaction volume of €1.99 billion on the German residential property market for the third quarter of 2025. This brings the cumulative total for Q1 – Q3 2025 to €5.84 billion, an increase of 2% compared to the same period last year.
Looking at the individual quarters of 2025 in comparison, the third quarter was around €280 million higher than the previous quarter. Market participants continue to show high interest and confirm increasing market activity.
Jan-Bastian Knod, Head of Residential Investment Germany at Cushman & Wakefield, comments: "In the third quarter, individual transactions were the main drivers of the market. Nevertheless, we continue to see strong interest, particularly from foreign capital looking to invest in residential property in Germany. We also consider it a striking and positive sign that national investors were very active in the third quarter and are increasingly returning as market participants."
Third quarter of 2025: Focus on individual assets, low portfolio transaction volume
In the third quarter of 2025, portfolio transactions worth €755 million were recorded, primarily local portfolio transactions amounting to €500 million. Supra-regional portfolios thus contributed €255 million to the transaction volume.
Individual transactions in particular dominated market activity in the third quarter. Residential investments in individual properties accounted for over €1.23 billion. This corresponds to 62% of the total transaction volume in Q3 2025.
Domestic investors remain dominant. In the third quarter, they accounted for 83% of residential investment volume in Germany. "This development can also be explained by the agile transaction activity in individual assets, which accounts for a large part of the investment volume of domestic investors. International investors, with a market share of only 17% in the third quarter, are primarily active in portfolio transactions.
Price stabilisation is becoming increasingly apparent
Cushman & Wakefield considers price stabilisation to be complete, yet the prime yield remains at 3.80% for the time being, as in the previous quarter. Nevertheless, there are already signs of a slight downward trend in yields in the residential property market. For this reason, Cushman & Wakefield expects yields to continue to fall slightly in the coming months.
Student residences and micro-living: high demand with low transaction volume
The transaction volume for student accommodation and micro-living in Q1–Q3 2025 is €118 million, slightly below the level of the same period last year. It is clear that the market continues to generate high demand, but low construction activity and generally limited product availability continue to slow down these promising segments.
Jan-Bastian Knod concludes: "We continue to see a clearly positive trend, which, according to our observations and assessments, will continue until the end of the year and into 2026. The high level of interest in residential investments from national and international capital demonstrates the high attractiveness of this sector and is confirmed by a good third quarter in 2025."
