Purchase prices for German multifamily properties have dropped an average of 17 percent, moving back to valuation levels last recorded in 2018.

In its Residential investment 2023/24: An overview of residential/commercial-mix properties report, Colliers has said that it does not expect prices to fall further, although slight corrections are still possible in some residential sub-segments in Germany. As a result, the advisory firm believes price levels for both residential and residential within mixed-use properties have found a “new equilibrium”.

“Germany’s housing shortage is intensifying because there is not enough construction activity,” says Felix von Saucken, head of residential Germany at Colliers. “Rent prices at stock properties will inevitably continue to rise, which indicates that purchase prices will not continue to fall. In fact, purchase prices in many locations have bottomed out. It now makes sense for investors to get back in the mark