Since the turning point in interest rates in 2022, Germany’s real estate market has been characterised by a paradox. Development projects exist in theory, and so does capital. But schemes have not been getting off the ground.
The bottleneck question for German institutional investors, therefore, is not whether they can invest, but how. To solve this problem, many international parties, particularly Anglo-Saxon and Scandinavian investors, have already changed their approach. Instead of waiting for the ultimate “bottom” in pricing, they are securing development access through partnerships by building platforms with local developers and long-term owners, and putting equity to work.
Using such methods to gain access to projects is happening not because Germany is particularly cheap at the moment, but because it remains an attractive economic location offering a high degree of legal certainty.
Capital is more selective
The shift is vis
