German institutional investors are increasingly looking towards North America. Around 35 per cent of market participants can envisage allocating capital directly or indirectly into Canadian real estate. Approximately 20 per cent of surveyed institutions already hold such assets in their portfolios. This is shown by a survey conducted by consultancy RUECKERCONSULT in August and September 2026 on behalf of investment manager Fiera Real Estate.
Wenzel Hoberg, Global Head of Real Estate at Fiera Real Estate, views the interest shown by more than a third of investors as an encouraging signal. In his assessment, European players are increasingly recognising the structural advantages of the location. Alongside stable economic growth, Canada is characterised primarily by continuous population growth driven substantially by skilled immigration. This demographic momentum ensures reliable demand across all sectors.
Residential real estate dominates sector preferences
A clear prioritisation emerges when choosing asset classes. At 86 per cent, the vast majority of interested institutions favour residential properties. Logistics space follows at 43 per cent and office properties at 29 per cent. The retail and healthcare sectors see lower interest, each at 14 per cent. Hoberg explains that many institutional investors already hold substantial residential portfolios in their domestic German market and aim to diversify within this asset class specifically through allocations in Canada.
- —Residential properties lead sector interest at 86 per cent
- —Logistics assets follow at 43 per cent, ahead of office space at 29 per cent
- —Retail and healthcare each register interest of 14 per cent
Investment horizons, risk profiles and return expectations
Regarding the timing of investments, the interested third of investors plan relevant transactions within the next two to four years. In terms of risk profile, many respondents pursue parallel strategies. Around 71 per cent favour core and core-plus approaches, while 57 per cent consider investments in the value-add segment. Opportunistic strategies are an option for 29 per cent of respondents. Total return expectations are ambitious: 57 per cent of interested parties calculate on a total return of more than 8.0 per cent per year, while 43 per cent target returns between 5.0 and 6.0 per cent.
A total of 20 institutional players took part in the survey. The participant group comprised banks at 35 per cent, pension funds and occupational pension schemes at 25 per cent each, insurance companies at 10 per cent, and church organisations at 5 per cent. More than half of participants, exactly 55 per cent, manage real estate assets under EUR 500 million. 15 per cent manage portfolios between EUR 500 million and 1.0 billion, a quarter fall within the EUR 1.0 to 5.0 billion range, and 5 per cent manage volumes of more than EUR 5.0 billion.
