The German residential investment market could be on the cusp of a major recovery as capital allocation into the sector increased by almost two-thirds in the second quarter of 2024.

In a year-over-year comparison, Empira Group has found investment in larger residential portfolios — of 30-plus units — increased in the second quarter of 2024 to around €2.5 billion. Investment into the sector for the second quarter of 2023 was approximately €1.5 billion. The manager also estimates that 65 percent of all new German apartment developments can be categorised as multifamily buildings, meaning that there is scope for further investment growth in the area during 2024.

Steffen Metzner, head of research at the Empira Group, believes the rise in investment has been encouraging. “This significant increase in investment activity can be interpreted as a sign of a market recovery and indicates that residential real estate is still an important stability anchor for institutio