Commercial real estate investment rises 25 per cent to €12.7 billion – residential investment slightly above previous year at €4.1 billion – highly varied regional performance across the Top 7 markets
- Commercial investment market records its highest first-half volume in four years
- Munich the only market to come close to the €1 billion mark
- Düsseldorf doubles first-half volume year-on-year and emerges as the clear top-performing market in Q2
Germany’s real estate investment market concluded the first half of 2026 on a distinctly positive note. According to Cushman & Wakefield’s analysis, the combined transaction volume of commercial and residential real estate investments totalled €16.6 billion during the first six months of the year. This represents an increase of 20 per cent compared with the first half of 2025.
The commercial sector accounted for the largest share of activity, recording a transaction volume of €12.7 billion. This result was 25 per cent higher than in the corresponding period of the previous year and marks the highest first-half volume in four years. However, the figure remains around 20 per cent below the average recorded across the first halves of the years 2021–2025.
The residential investment market also posted positive growth, ending the first half of the year at €4.1 billion, representing a 6 per cent increase compared with H1 2025.
Despite the overall positive market trend, a closer examination reveals a more nuanced picture. Significant differences remain both by asset class and by region. This is particularly evident across Germany’s seven largest investment markets, which in aggregate remained below the previous year’s level, while displaying very different individual performances.
Regional performance: Düsseldorf shines in Q2, Munich narrowly ahead of Berlin
Among the Top 7 markets, Munich led the rankings in the first half of 2026 with a transaction volume of €951 million, approximately 5 per cent above the previous year’s level. Berlin followed in second place with around €800 million.
Düsseldorf delivered the strongest momentum. The North Rhine-Westphalian capital recorded approximately €775 million in transaction volume during the first half of the year, doubling its result from H1 2025. In the second quarter alone, Düsseldorf was by far Germany’s strongest investment market, with transaction volume exceeding €580 million.
This quarterly figure represented a threefold increase compared with Q1 2026. As a result, Düsseldorf accounted for approximately one-third of the Top 7 transaction volume and more than 10 per cent of nationwide investment activity during the second quarter.
This exceptional performance was driven by several large-scale transactions, including the largest single-asset deal in Germany during the quarter: the acquisition of the Dreischeibenhaus by a consortium led by HIH Invest from Black Horse Investments. Düsseldorf also benefited from the sale of the logistics centre “The Tube” on the former Vallourec industrial site, which formed part of a German-Dutch logistics portfolio transaction.
Logistics portfolio largest transaction of the second quarter
While international healthcare portfolio transactions shaped the German investment market in the first quarter, the second quarter was marked primarily by a major logistics portfolio transaction.
The portfolio, comprising four properties, was acquired by Frasers REIT, including assets purchased from Frasers Property. The transaction highlights the continued attractiveness of logistics real estate to institutional investors.
Statistically, the acquisition was reflected in the strong performance of the logistics and industrial sector. During the first six months of 2026, logistics assets accounted for €2.6 billion, equivalent to 21 per cent of commercial investment volume. This placed logistics only marginally behind the office sector, which generated €2.78 billion and a market share of 22 per cent.
The healthcare portfolio transactions recorded in the first quarter continued to have a significant impact on sector statistics. With a volume of €5.16 billion and a market share of 41 per cent, the “Other” category remained the dominant asset class. Offices and logistics ranked second and third respectively.
Simon Jeschioro, Head of Capital Markets & Investment Advisory Germany at Cushman & Wakefield, commented:
“In many cases, high transaction volumes in the first quarter of a year, particularly in the major metropolitan markets, are driven by deals carrying over from the previous year – and 2026 has been no exception. Düsseldorf, however, has followed the opposite pattern. It appears that investor requirements – namely long-term leases with core tenants in prime locations – are currently particularly well aligned with the opportunities available in the Düsseldorf market.
That said, Düsseldorf is not an isolated case. The largest transactions of the first half of the year in Hamburg, Munich, Berlin and Frankfurt also demonstrate this trend. These transactions largely involved fully let office buildings, in some cases occupied by a single tenant, attracting new ownership.”
Notable examples include Art-Invest’s acquisition of Deutsche Bank’s headquarters at Alter Wall 37–53 in Hamburg, CONREN Land’s purchase of Prinzregentenplatz 7–9 in Munich, the acquisition of Berlin Decks Buildings 1 and 2, and DZ Bank’s purchase of “Fifty Avon” at Mainzer Landstrasse 50 in Frankfurt. The bank intends to use the property, located close to its headquarters, as additional office space.
Selective investment strategies remain key
According to Cushman & Wakefield, careful asset selection and the targeted pursuit of opportunities remain decisive factors for investors. Depending on market conditions, this may lead to significant variations in transaction volumes across cities and asset classes from quarter to quarter.
Simon Jeschioro added:“The general principle remains unchanged: markets supported by strong supply and demand fundamentals, sustainable rental growth and high-quality stock continue to perform well. Some investors are increasingly focusing on sectors such as logistics and residential.
In the retail sector, we continue to see healthy demand overall, alongside several active requirements that could result in larger single-asset and portfolio transactions during the second half of the year. At the same time, a growing number of buyers are selectively re-entering the office market where underlying fundamentals support long-term value preservation and capital appreciation.”
