Between April 2024 and March 2025, German real estate investment volumes* reached c.€34.6bn, an increase of 12% year-on-year, says Savills. Q1 2025 volumes were c.€6.9bn, roughly in line with the corresponding quarter last year, according to the international real estate advisor.

Over the last twelve months, Savills recorded transaction volumes of €4.7bn for offices, reflecting a decrease of 13% year-on-year and making offices only the fourth most popular sector for investment. Residential properties made up the highest proportion of total volumes (c.€9.8bn / +39%), followed by industrial/logistics (c.€6.7bn / +4%) and retail (c.€5.6bn / -1%). Savills recorded the strongest year-on-year growth for healthcare / care home properties with an increase of 62% in transaction volumes to c.€1.6bn.

Prime yields have remained unchanged across all German real estate sectors in the first quarter of the year, ranging from 3.6% for apartment buildings to 5.8% for shopping centres.

Karsten Nemecek, Deputy CEO and Head of Capital Markets at Savills Germany, says: “The number of sales processes has noticeably risen since the beginning of the year, leading us to expect a modest increase in transaction activity over the coming months. A decisive factor will be how many of those properties will find buyers. At the same time, the recent interest rate hike has increased the motivation to sell, particularly for owners of debt-financed properties; a factor that might raise the probability of completions.”

“The macro environment in recent weeks and months has been rather chaotic and there are many indications that it will remain volatile. However, with a new federal government in place and expenditure packages having passed parliament, Germany has the opportunity to once again position itself as a safe haven for investors.”

Find out more: Dashboard Investment Market Germany

* Transactions of at least 50 residential units only