RESIDENTIAL INVESTMENT REMAINS ASSET CLASS WITH HIGHEST TURNOVER
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The German residential investment market was able to transfer the market recovery that began last year into the new year 2025. The investment volume increased significantly in the first three months compared to the previous year and around €2.5 billion was invested in larger residential portfolios (30 residential units or more). This means that the residential investment market continues to be the asset class with the highest turnover, well ahead of office (approx. €1.7 billion), logistics and retail (approx. €1.3 billion each). Although the long-term average was missed by 40%, the previous year's quarterly result was more than tripled.
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While larger existing portfolios still had an unusually low market share for the German residential investment market in the two previous years, they accounted for the largest share of the overall market in the first three months at €1.5 billion. On a positive note, the first major nationwide portfolios in the value-add segment were traded again. The increase in the number of large transactions and the significantly higher overall frequency of transactions finalised show that the uncertainties for investors are receding from the market and a sustainable price structure has emerged.
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What is striking about the distribution of the investment volume is that the solid investment environment of the A-cities has recently been less sought after. The A-cities only have a below-average market share of around 37% (Ø10 years: 48%). With an investment turnover of €545 million, Berlin also remains at a slightly below-average level of 22% (Ø10 years: 26%). One reason for this is likely to be the renewed importance of large-volume nationwide portfolios.