Residential investment: Positive market signals in the first half of 2026

How much do mixed-use buildings cost in Germany?

The German market for residential investment and mixed-use buildings is currently characterised by stable prices. In the first half of 2026, the average asking price for existing mixed-use properties stood at EUR 1,959 per square metre – broadly in line with the figure recorded during the same period last year.

A closer look at the details, however, reveals significant differences. By city category*, average asking prices for existing properties were as follows:

• EUR 3,975 per square metre in Class A cities (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart)

• EUR 2,278 per square metre in Class B cities (14 major cities of national significance)

• EUR 2,366 per square metre in Class C cities (22 medium-sized cities)

* Based on the classification criteria defined by independent market analysis firm bulwiengesa.

Larger cities are also seeing greater price dispersion between individual properties. One reason is the relatively high proportion of existing buildings in need of refurbishment. Depending on their energy efficiency rating, these properties are subject to price discounts, which in turn widens the range of prices within individual cities.

How are prices developing for newly built apartment buildings?

Future-ready properties in the new-build segment continue to command significantly higher asking prices. Across Germany, newly constructed mixed-use properties were offered at an average of EUR 4,112 per square metre in the first half of 2026 – an increase of 3.3% compared with the same period last year.

This price development reflects the fact that new-build properties are both in demand and scarce. In 2025, just under 207,000 residential units were completed, representing a further decline of 18% compared with 2024. One potential positive sign is that approximately 15% more building permits were issued in Germany during the first half of 2026 than in the same period of the previous year. Although not every building permit ultimately results in a completed project, this trend could provide some relief in the new-build market over the medium term.

How much have rents in multi-family homes increased?

The continued shortage of housing in Germany means that asking rents have continued to rise in almost all areas. Existing properties recorded an average increase of 3.2% in the first half of the year, while rents for new-build properties rose by 2.0%.

Among Germany’s ten largest cities, Hamburg recorded the strongest increase in average asking rents, rising by 6.2% when comparing the first halves of 2025 and 2026. For owners of apartment and mixed-use buildings, rising rents represent a stabilising factor that has a positive impact on the value development of their properties.

What yields can investors expect?

In parallel with rental growth, purchase yields for apartment and mixed-use buildings also increased slightly. In the first half of 2026, yields stood at 4.5% in Class A cities, 5.3% in Class B cities and 5.4% in Class C cities. Compared with the previous year, this represents an increase of between 0.1 and 0.2 percentage points.

What opportunities are arising for investors?

The first half of 2026 highlights a resilient market for apartment and mixed-use buildings that continues to develop steadily. More building permits, stable and attractive yields, and a regionally differentiated yet moderate overall price level are creating a constructive market environment.

Investors who keep a close eye on the market for apartment and mixed-use buildings can identify attractive opportunities across different capital and risk profiles – from core investments in prime locations in Class A and B cities to value-add opportunities involving properties in need of refurbishment in many other locations.