At a Glance Q4 2023

Residential investment market Germany

Wohn-Investmentmarkt Deutschland

YEAR OF HIGH CONSUMER RETICENCE

The German residential investment market was greatly impacted by increasing financing costs, low risk premiums compared to other similarly secure asset classes, and a significant rise in uncertainty regarding further regulation. Only € 5.23 billion was invested in larger residential portfolios (30 units or more) across Germany. This represents a decrease of 60% from the previous year. The investment volume was also at its lowest since 2010, undercutting the long-term average by 72%. The German residential investment market did not experience any significant recovery in the second half of the year. This was due to macroeconomic uncertainties, polycrisis-like effects, and the expectation of falling prices. As a result, investors were more reluctant to buy, and many projects were postponed or cancelled.

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