Friday, 17 October 2025
Real estate continues to play a central role in the investment strategies of family offices across Germany, Austria and Switzerland, according to the KINGSTONE Family Office Real Estate Report 2025. Based on a survey of 32 family offices conducted between late August and September, the study found that property holdings make up around 56% of total assets—by far the largest share of any asset class. Equities follow at roughly 19%, while cash, bonds and alternatives are less significant.
Family offices differ from institutional investors in how they structure their portfolios, the report notes. While pension funds or insurers tend to diversify more widely, family offices hold a larger proportion of their wealth in property and favour direct ownership. More than 80% of real estate exposure is through direct investments, with joint ventures and club deals also common. Only a small share of respondents said they invest through traditional funds.
The strongest focus remains on residential real estate, which accounts for nearly 38% of total property investments. Offices make up a quarter, followed by mixed-use buildings and retail. Despite growing interest in sustainability, renewable energy assets represent less than 2% of allocations—an area where the report’s authors expected more activity.
Geographically, portfolios are concentrated in Germany, which represents about 88% of total real estate holdings. Only around 6% is invested elsewhere in Europe and a similar share in North America. KINGSTONE Real Estate’s co-founder Philipp Schomberg observed that this high domestic weighting is largely the result of historical investment patterns, though it raises questions about diversification.
Looking ahead, most respondents intend to increase their real estate exposure further over the next year. Half plan small expansions of up to 10%, while about one in ten expects stronger growth. A quarter plan to maintain their current positions, and only a small group aims to reduce property exposure.
In terms of acquisition plans, German residential properties dominate near-term targets. Roughly 60% of surveyed family offices plan to buy existing residential buildings, while about 50% are considering new developments. A smaller portion—around one-third—also aims to invest in residential assets in the United States or other North American markets. Interest in office or retail space is considerably lower.
When assessing new opportunities, investors said that location, sector experience and asset stability are the most important criteria, outweighing considerations like design or brand reputation. Family offices, the study concludes, take a conservative and pragmatic approach, prioritising long-term preservation of value over short-term returns.
Expectations for cash-on-cash returns are moderate: about 40% of respondents anticipate annual net yields between 3.0% and 4.5%, and another 22% expect 4.5% to 6.0%. Only a quarter foresee higher returns above 6%.
The report highlights how, even amid broader market uncertainty, real estate remains the cornerstone of wealth management for family offices in the DACH region—anchoring portfolios in tangible assets while offering a measure of stability against market volatility.
Photo: Dr. Tim Schomberg, and Philipp Schomberg, KINGSTONE RE
Source: KINGSTONE Family Office Real Estate Report 2025
