Wednesday, 2 September 2026
Germany’s commercial real estate investment market is showing stronger signs of recovery in 2026, with transaction activity accelerating as buyers and sellers increasingly reach agreement on pricing after several years of market adjustment.
Data from due diligence platform Drooms indicates a substantial increase in transactions passing through its systems. During the first six months of 2026, the number of German real estate transactions recorded on the platform had already reached approximately three-quarters of the total registered throughout 2025. If activity continues at a similar pace during the second half, Drooms estimates that its German transaction count could finish the year around 50% above the 2025 level.
The improvement is considerably stronger than the change recorded a year earlier, when transactions handled through the platform increased by only around 4.1%.
“The number of transactions remained relatively stable in recent years, fluctuating by only a few percentage points. For the first time since the start of the Ukraine crisis, we are seeing a more pronounced upward movement,” said Alexandre Grellier, CEO of Drooms.
The direction is also visible elsewhere in Europe, although Germany appears to be experiencing a particularly strong acceleration. Based on activity during the first half, Drooms estimates that the number of transactions recorded across its European operations could increase by 27.24% over the full year.
Improved agreement between buyers and sellers appears to be one factor behind the higher transaction count. After several years in which higher financing costs forced investors and owners to reconsider asset values, more properties are reaching a price at which transactions can proceed. Pressure on some owners to sell may also be contributing to the increase.
“Germany’s transaction market stands out in Europe for its sharp increase in momentum. It appears that price discovery between buyers and sellers is working better, or simply that the pressure to sell has become strong enough,” Grellier said. “Given the global uncertainty, no one can say how long this positive sentiment will last. Owners looking to sell should therefore remain transaction-ready so that they can capitalise on this kind of market momentum.”
Investment volumes provide additional evidence of improving activity. Market figures cited by Drooms put German real estate transactions at just under €16.2 billion during the first half of 2026, an increase of 13% compared with the same period last year. Around 800 transactions were recorded, with an average deal size of approximately €20 million.
The recovery remains selective, however. Germany’s seven largest property markets have contributed significantly to activity, alongside larger office transactions and portfolio deals involving residential, logistics, care and healthcare properties.
“The market is continuing its gradual recovery. Geopolitical uncertainty is still prompting caution, but the market is fundamentally recovering. Price discovery is working better than in 2025, and the underlying fundamentals remain intact,” said Jan Linsin, Head of Research Germany at CBRE. “The recovery is being driven by the top seven markets, large-volume office transactions, and portfolio deals in care and healthcare properties, logistics and residential.”
The composition of activity suggests that capital is returning most readily to sectors and properties where investors have greater confidence in income and future liquidity. Buildings requiring substantial capital expenditure, facing leasing uncertainty or carrying unresolved valuation issues may take longer to participate fully in the recovery.
Higher transaction numbers also do not necessarily mean that property values are recovering at the same pace. Refinancing requirements, approaching debt maturities and portfolio restructuring can encourage owners to sell even where market pricing remains below previous expectations.
Another constraint is the amount of time required to complete transactions. Drooms found that the average transaction process across Europe remained at 363 days in 2025. Germany recorded a modest improvement, with the average falling from 405 to 398 days, but this still represents a lengthy process for investors attempting to deploy capital.
“We are seeing a positive trend in transaction times. However, they remain at a very high level,” Grellier said. “Long transaction times could slow the recovery in the transaction market.”
The combination of increasing deal numbers and lengthy execution periods provides a more nuanced picture of Germany’s property recovery. Liquidity is improving and valuation expectations appear to be converging, but investors continue to examine individual assets carefully rather than returning indiscriminately to the market.
For owners considering disposals, the improvement in liquidity could provide a more favourable environment than during the deepest stage of the market correction. Buyers, meanwhile, are likely to continue distinguishing sharply between properties capable of attracting financing and assets requiring substantial repositioning.
The first half of 2026 therefore points towards a further normalisation of Germany’s property investment market. The next test will be whether the increase in transactions spreads beyond the strongest locations and most liquid asset classes during the remainder of the year.
