The German residential property market recorded a transaction volume of EUR 2.22 billion in the second quarter of 2026. This represents an increase of 30 per cent compared to the same quarter last year (EUR 1.71 billion). In the first half of 2026, the volume reached EUR 4.10 billion, an increase of 6.5 per cent compared to the first half of 2025 (EUR 3.86 billion). Jan-Bastian Knod, Head of Residential Investment Germany at Cushman & Wakefield, noted that market activity is primarily characterised by a growing number of portfolio deals, with international investors increasingly involved to accelerate their market entry into Germany.
While single transactions dominated in the first quarter of 2026, the portfolio transaction volume rose to EUR 1.03 billion in the second quarter, an increase of almost 130 per cent compared to the first quarter (EUR 450 million). National capital primarily focuses on single transactions or local portfolios. An example of this is the acquisition of a residential project portfolio from Delom in Frankfurt by Next Generation Invest. This portfolio comprises six multi-family houses with 290 residential units and an estimated investment volume of around EUR 120 million; completion is scheduled between 2027 and 2029. This trend towards participation in project developments signals increasing attractiveness of forward deals for institutional investors to secure early access to high-quality new-build products.
International capital is increasingly investing in supra-regional portfolios. Net Zero Properties acquired a portfolio from Ares and Forte with over 1,000 residential units and approximately 57,800 square metres of lettable space in Northern Germany. Forte, together with Tikehau, was also involved in another acquisition, in which an ensemble of five properties with around 300 apartments was acquired from MEAG, including assets in Frankfurt, Düsseldorf, Cologne, and Bonn. The increase in transaction volume in the second quarter of 2026 is largely due to the rise in international capital, which reached EUR 893 million (40 per cent) of the total volume, an increase of EUR 428 million compared to the previous quarter. National capital sources contributed EUR 1.33 billion to the total volume, accounting for 60 per cent.
International investors are increasingly focusing on the student and micro-living segments. Jan-Bastian Knod remarked that new investment vehicles with specific strategies are exploring the German market in the Top 7 cities and at larger university locations. However, the transaction volume in these areas in the first half of 2026 amounted to only EUR 71 million. A current example is the acquisition of a student residential project with around 300 apartments in Berlin-Spandau by Home & Co. The project development by Felix Dierken Beteiligung and Bungs Patzschke Projektentwicklungs GmbH is already under construction, with completion scheduled for the first quarter of 2027.
Based on these developments, a higher transaction volume is expected for the second half of the year. Given the limited product availability, investors are developing new strategies and creative solutions. Early entry into high-quality, centrally located project developments is once again proving to be an effective means to further invigorate the market. The IC Campus platform offered, an OpCo/PropCo transaction, remains of interest to international investors due to its size, as it can facilitate market entry into Germany. Jan-Bastian Knod concluded that the market is gradually gaining momentum. The increasing activity of national and international capital sources, particularly in large-volume portfolios, student and micro-living projects, and platform deals, is shaping the current situation. Cushman & Wakefield forecasts a dynamic second half of the year, with the phase of price stabilisation considered complete, according to Jan-Bastian Knod.
