Survey: Property owners plan further investment in 2026/27

A recent survey by Engel & Völkers Research of 209 owners of apartment buildings across Germany reveals that more than 70 percent of respondents are planning concrete investment steps over the next twelve to twenty-four months whether through acquisitions or disposals, the upgrading of existing assets, or targeted portfolio reallocation. The market is moving.

Investment strategies: Value-add leads the way

More than half of respondents are currently active in the market for residential investment: 17.9 percent are investing without restriction, while a further 36.7 percent remain engaged, albeit at a more measured pace. Together, this means over 54 percent are either executing transactions or actively preparing them. Those who are still holding back tend to do so for tactical reasons rather than a lack of interest.

Active investors predominantly favour a value-add strategy: just over half (51.4%) cited this approach, whereby investment properties are enhanced in value through targeted improvements. Core and core-plus strategies follow, each cited by approximately 39.4 and 38.5 percent respectively representing investments in stable, well-let assets with moderate risk profiles. Project development and opportunistic approaches currently play a lesser role, at 22.9 and 18.3 percent respectively. (Multiple answers were permitted.)

Outlook: Prices and interest rates expected to remain stable

Respondents' assessments of future purchase price trends are predominantly cautiously optimistic: around 33.5 percent expect prices for residential and commercial properties to rise slightly over the course of 2026, while just under 23.3 percent anticipate a modest decline. Around a third (32.4%) expect prices to remain broadly unchanged.

On the question of interest rate expectations, realism likewise prevails: nearly two thirds of respondents (65.9%) anticipate only a slight increase in interest rates over the next twelve months. Just 6.9 percent expect a sharp rise, while around 26.6 percent consider falling rates to be a realistic possibility.

Future plans: Acquire, upgrade, rebalance

Looking ahead, upgrading and further developing existing holdings tops owners' agendas: 46 percent of respondents cited this as their primary objective. A further 45 percent are planning additional property acquisitions, underscoring the dominance of active investment strategies. Only around 29 percent of investors intend to adopt a wait-and-see approach for the time being. ESG-driven refurbishments feature on the agenda for 16 percent of respondents over the next two years.

Regulation and interest rates as key challenges

The greatest sources of uncertainty cited by respondents are, above all, legislative interventions in tenancy law, followed by financing costs and conditions, as well as regulatory and political frameworks such as taxation and planning law. Geopolitical conflicts also play a role. When asked about potential game-changers, priorities are clear: deregulation and reduced state intervention, together with falling interest rates, are by far the most frequently mentioned.

About this survey

The 2026 Engel & Völkers Research end-client survey on residential investment was conducted between 23 March and 17 April 2026. A total of 209 owners of apartment buildings from across Germany participated in the anonymised online survey. Private owners accounted for the largest share of respondents (66%), followed by semi-professional investors and family offices. Baden-Württemberg, Berlin and North Rhine-Westphalia were the most strongly represented regions.