- Residential property transaction volume in Q1 2026 stands at €1.88 billion – compared to €2.15 billion in Q1 2025
- Prime yield of 3.80 per cent
Cushman & Wakefield recorded a transaction volume of €1.88 billion on the German residential property market in the first quarter of 2026. Despite a 13 per cent decline compared with the same quarter last year, a clear trend towards market stability is evident. The duration of transaction processes remains significantly longer than a few years ago, and many deals in the pipeline have not yet been finalised.
Jan-Bastian Knod, Head of Residential Investment Germany at Cushman & Wakefield, comments: “The moderate decline in transaction volume reflects neither current market activity nor the sustained high level of interest in the German residential market. We are seeing a number of positive signs: alongside foreign investors increasingly seeking large-scale investments, domestic capital is also returning to the market in growing numbers. The fact that forward deals are once again being concluded, particularly in the new-build sector, underscores the growing confidence in this asset class.”
Demand from domestic capital increasingly active, focus on individual transactions
In the first quarter, purchases by domestic capital dominated, accounting for 75 per cent of the total transaction volume. The remaining 25 per cent was generated by international capital. It is notable that individual transactions accounted for three-quarters of the transaction volume, which is logical, as foreign capital focuses primarily on large-volume portfolio purchases, whereas domestic capital is primarily seeking individual transactions up to a mid-double-digit million figure. However, larger portfolios in the residential investment sector remain an exception overall and are primarily transacted in the core segment, featuring prime locations and high-quality properties. Domestic capital remains more selective.
Student and micro-living: High investor interest – transaction activity remains at a low level due to limited product availability
Demand for student accommodation remains high, whilst supply continues to lag significantly behind demand. Some projects are currently still in the final stages and will be completed in the coming months. Against this backdrop, Cushman & Wakefield expects a noticeably higher transaction volume in this segment by the end of the year – driven by growing investor interest and increasingly clear pricing.
Jan-Bastian Knod concludes on the further development of the residential investment market in Germany
“The pronounced market dynamics and the growing interest from both national and international investors confirmed at the start of the year that price stabilisation is complete. Transaction activity is being driven from two directions: the return of domestic capital on the one hand, and the sustained strong demand from foreign investors for large-volume deals on the other.”
According to Cushman & Wakefield, a number of large-scale portfolio transactions are also in the pipeline for 2026, along with a noticeable increase in activity in the student housing and micro-living segments.
