Monday, 5 October 2026
Germany’s property investment market lost momentum during the third quarter of 2026, but residential portfolios attracted renewed international interest while logistics continued to compete closely with offices for commercial investment capital.
Cushman & Wakefield recorded EUR 23.6 billion of commercial and residential transactions during the first nine months, 8% more than in the corresponding period of 2025. The rate of growth has slowed considerably from the 20% increase recorded at the end of the first half. Commercial property accounted for EUR 17.85 billion, while residential investment contributed EUR 5.75 billion.
Residential investment remained relatively stable compared with last year. C&W’s EUR 5.75 billion nine-month total was 1.6% below the comparable 2025 figure, while BNP Paribas Real Estate recorded EUR 5.9 billion, down 5%. Colliers calculated EUR 6.1 billion, 7% lower year on year. Despite differences in methodology, the main market studies therefore place German residential investment at around EUR 6 billion for the first nine months.
Larger residential portfolios became more important during the third quarter. C&W recorded EUR 965 million of portfolio transactions, equivalent to 59% of its EUR 1.65 billion quarterly residential volume. Colliers produced a similar portfolio share of 58%, although its Q3 market total was higher at EUR 1.9 billion. BNP Paribas recorded approximately EUR 1.6 billion for the quarter and also identified existing portfolios as the main source of activity.
One of the quarter’s largest residential transactions was the sale of DWS’s Polarlicht portfolio to Net Zero Properties. The acquisition involved approximately 5,600 apartments with around 333,000 sqm of lettable space across five locations in northern Germany. Market reports put the transaction at approximately EUR 350 million, although the purchase price has not been officially disclosed.
International investors also increased their presence. According to C&W, foreign capital represented 38% of Q3 residential investment, compared with 17% a year earlier. Other market studies indicate an even stronger international contribution, reinforcing the broader evidence that cross-border investors have returned as significant buyers of larger German residential portfolios.
The commercial market followed a different pattern. C&W recorded approximately EUR 4.1 billion of industrial and logistics investment, up 18% year on year, compared with EUR 3.76 billion for offices. BNP Paribas Real Estate produces a different ranking, with offices at almost EUR 4.4 billion and logistics at around EUR 4 billion. The comparison shows that the two sectors are now relatively close, while differences in adviser methodology determine which ranks first.
Retail and hotels remained considerably weaker in C&W’s dataset. Retail investment almost halved to EUR 2.2 billion during the first nine months, while hotel transactions declined by nearly 40% to EUR 960 million. At the same time, large land and infrastructure-related transactions contributed significantly to other investment categories, including Amazon Web Services’ approximately EUR 220 million acquisition of a development site at Schöneck in the Rhine-Main region.
The recovery nevertheless remains sensitive to financing conditions. Residential advisers report more difficult price negotiations as capital-market yields and borrowing costs have risen. C&W’s prime residential yield remained at 3.80%, while BNP Paribas recorded further outward movement across Germany’s major cities and CBRE calculated an average prime multifamily yield of 3.59% across the Top 7 markets. The different measures all point to continuing adjustments in investor pricing rather than a fully stabilised market.
Germany’s investment market is therefore becoming more active in selected areas without returning to its previous scale. C&W’s combined nine-month volume remains 29% below its five-year average and 44% below the ten-year average. The return of international capital to residential portfolios and the stronger position of logistics show where investors are currently finding opportunities, while higher financing costs continue to limit a broader recovery.
