Market for residential portfolios in Germany defies economic uncertainty with total investments of €2.3 billion in the first quarter of 2025
Following a rise in purchase and sales volumes, Open-Ended Funds and Special Fundsrepresent the second strongest buyer as well as the dominant seller group ahead of Project Developers and Contractors
Increase in portfolio trading in the mid-price segment; decrease in the category below €10 million
Outlook for 2025: General conditions remain challenging. Portfolio streamlining of properties in need of refurbishment, fire sales and resilience of the residential property markets are boosting transaction activity, however. A dynamic start to the year and increased investment interest on the part of institutional market players indicate that the €10 billion mark will be exceeded, as was most recently the case in 2022.
Take-up of 202,100 sqm represents one of the strongest Q1 results on record
Banks, financial service providers and insurance companies dominate the market
58 % of take-up lies within the Central Business District
Rise in vacancies is halted
Increase in rents owing to large lettings in projects, new buildings and refurbishments: prime rent now at €51.50/sqm and average rent at €30.60/sqm
Positive outlook for 2025: further major deals are close to completion; financial package from the new government will help boost demand for office space
