Germany’s residential investment market saw a strong recovery in 2024, reaching €42.5 billion ($49 billion) in transaction volume, a 29 percent year-over-year increase. This growth is driven by high demand for housing, ongoing rising rents and a limited supply due to a significant decline in new construction activity. Institutional and private investors are increasingly focusing on existing properties, Environmental, Social and Governance (ESG)-compliant assets, and portfolios. Continued high transaction activity is expected for 2025/2026, according to Colliers’ latest report German Residential Market – Facts, Trends & Outlook 2025-2026.
“Despite the challenging economic environment, the German residential market has noticeably stabilized since 2024. Increased investment activity and attractive pricing levels offer investors a compelling entry point. Rising rents and long-term demand drivers reinforce residential real estate’s status as a reliable ass
