Real Estate Market Report Germany - Q3 2026
2.11.2026
Economic momentum slowed at the start of the third quarter, although sentiment indicators have brightened. In real estate investment, financing and pricing remain demanding, and investors are acting selectively. Where are the new opportunities?
Key facts at a glance:
- Residential investment: Transaction volume in the first three quarters of 2026 reached €5.75 to €6.20 billion, 1.6% to 7.0% below the prior year. Portfolio deals accounted for 58% to 75% of quarterly volume.
- Residential prime yield: 3.59% to 3.80% in the Top 7 cities, depending on the data source.
- Office market: Take-up in the Top 7 markets was around 1.97 million sqm. Berlin posted the strongest gain at +49%.
- Commercial investment: Volume in the Top 7 cities fell 11% to around €6.7 billion. Munich led with €1.7 billion.
- Student housing: Private student accommodation is at around 95% occupancy.
- Financing: The ECB raised its deposit facility rate to 2.5%, and the 10-year swap rate stands at 3.7%.
Which sub-markets offer attractive entry points despite higher financing costs?
How will interest rates and the Building Code amendment affect project pipelines and new construction in the coming quarters?