Residential Dashboards

Key Takeaways

1. the German residential investment market continued to pick up over the course of the year 2024. In the year as a whole, € 9.3 billion was invested in larger residential portfolios (30 residential units or more). This made residential the strongest asset class in 2024, ahead of logistics (€6.9 billion), retail (€6.3 billion) and office (€5.2 billion). Given the return of investor confidence, the further improvement in the financing environment and the ongoing positive fundamental data, the upward trend on the German residential investment market is likely to continue in 2025.
2. the population has developed very positively in Germany over the last ten years (+5%) and created additional demand on the rental market. The supply side has not been able to compensate for the increased demand with corresponding supply, especially recently. The German rental market is therefore under significant pressure, which is reflected in the most dynamic rental price growth in many years.
3. According to the current regional planning forecast, population figures are also expected to rise over the next two decades, with above-average growth in the A-cities in particular. It can therefore be assumed that demand will remain very robust in the coming years, particularly in the metropolises.
4. Against the backdrop of a foreseeably weak level of new residential construction activity for years to come, rental prices are likely to continue their dynamic growth trend. In addition, the good prospects on the fundamental side and the stability of cash flows clearly speak in favour of investing in German residential properties.