A market that is growing again

Following consolidation last year, the residential real estate market is set to take off in 2026. A stable interest rate environment, realistic price developments, and a noticeable increase in market activity are creating opportunities and offering planning security. Both buyers and sellers are benefiting from the attractive conditions.

Rising transaction figures characterize the German residential real estate market at the beginning of 2026. Interest rates ranged between 3.7 and 3.8 percent in January and are unlikely to exceed 4.0 percent in the course of the year. At the same time, prices remain at a realistic level. For the rest of the year, analysts at Engel & Völkers Research expect price increases to be slightly above the inflation rate. This corresponds to healthy growth without the excessive price jumps seen during the low-interest phase.

Movement on the market
Anyone considering purchasing real estate in 2026 will therefore benefit from a favorable starting position. New and high-quality renovated properties are attracting particular interest. However, the potential of older existing properties should not be overlooked when searching for a new home. As these properties often do not yet meet high energy standards, they are often available to prospective buyers at particularly attractive prices.

It may be worthwhile to seize this opportunity—provided that buyers consider from the outset that renovation costs will be incurred in the coming years.

Market conditions are also positive for property owners. Demand is buoyant and willingness to buy is high. This widespread upturn is also evident in Austria and Switzerland, although the Swiss market is traditionally characterized by particularly high resilience and has seen more stable development in recent years than its two neighbors in the D-A-CH region.

Positive overall situation
The economic environment supports the positive overall situation. At around two percent, inflation is within the European Central Bank's (ECB) target range, which opens up stable prospects for private households and investors alike.

Conclusion: Anyone looking to buy or sell real estate this year will find healthy market conditions.

2026 is not a year to wait and see, but a year of opportunities and an ideal moment to make your next real estate decisions with expert advice.

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Following the market stabilization, prices are rising selectively. Location and energy efficiency are key determinants of value appreciation.

The figures from recent months paint a clear picture: the German residential real estate market is gaining increasing momentum. This development is also accompanied by rising prices. By the end of 2025, the median asking price for condominiums climbed to €4,050 per square meter – an increase of 4.4 percent compared to the end of the previous year. Single- and two-family homes recorded a rise of 2.2 percent, reaching an average of €2,934 per square meter.

Existing properties more affordable than new builds

The upward trend is expected to continue over the course of the year. Engel & Völkers Research anticipates an average price increase of between three and four percent during the year. Existing properties, in particular, are in high demand among buyers due to their immediate availability. Compared to new builds, prices remain at a lower level. At the end of the year, the median asking price for an existing home in Germany was around €375,000.

Regional differences remain significant. Munich leads the price scale with €9,206 per square meter for single- and two-family homes, followed by Düsseldorf (€5,991) and Frankfurt (€5,674). Buyers can often find more affordable prices per square meter in the surrounding areas of major metropolitan regions. Engel & Völkers advisors maintain a comprehensive overview of each region and are happy to assist with your search.

Energy efficiency determines price

Energy efficiency will remain a key price factor in 2026. The difference is particularly pronounced for condominiums: compared to an apartment with energy efficiency class A, selling a class D apartment in Germany requires an average discount of up to 37 percent.

The gap is even more significant for properties in the lowest class H: here, prices are discounted by 50 percent compared to class A. Energy efficiency also has a considerable impact on asking prices for single- and two-family homes, although somewhat less dramatically than for apartments. For class D homes, discounts of up to 26 percent compared to class A can be expected. Class H houses are traded at an average of 45 percent below the prices of class A properties.

Both parties should keep in mind that properties not yet renovated will need to undergo energy upgrades in the coming years, requiring additional investment. In this respect, price premiums or discounts depending on the energy efficiency class are justified in both purchase and sale scenarios.

Developments in Austria

Property prices in Austria have also risen again. The average purchase price for houses currently stands at around €370,000. Buyers of condominiums pay an average of just under €5,100 per square meter. Vienna, as well as the tourism regions in Tyrol and Salzburg, mark the peak price levels.

Outlook for the year

Engel & Völkers Research expects further moderate price increases across the entire D-A-CH region. This applies particularly to properties in good and very good locations, as well as to those equipped with modern energy technology. In average and simple locations, prices are expected to stabilize. The price gap between city centers and surrounding areas is likely to widen further over the course of 2026.

Our conclusion

“The residential real estate market has found a new level of stability after the disruptions of previous years. Current market conditions are highly favorable for buyers: interest rates are at a realistic level and prices are fair. Those who purchase today benefit from this situation. Compared to other asset classes, residential real estate in the D-A-CH region promises a secure long-term investment with solid value appreciation and, above all, a high emotional return.”

Till-Fabian Zalewski
CEO Engel & Völkers D-A-CH

E-commerce is driving demand for warehouse and distribution space. This segment stands for stable returns and long-term leases – but it requires market expertise and careful analysis from investors.

Industrial and logistics properties are among the fastest-growing segments of the German real estate market. The reasons include the continued strength of online retail, the need for efficient supply chains, and the trend toward last-mile logistics, which focuses on distribution centers located close to consumers.

For investors, these properties often offer favorable conditions such as long-term leases with established logistics service providers, retail chains, or manufacturers, resulting in reliable rental income. In prime locations especially, vacancy risk tends to be relatively low, as strong logistics hubs consistently record high demand. With these characteristics, industrial and logistics properties provide an excellent opportunity to diversify a real estate portfolio and represent a solid complement to traditional property investments such as residential apartment buildings or office assets.

Direct investment, funds, or REITs

Private investors have several options for participating in this successful asset class: direct investment in individual properties, capital investment through real estate funds, or indirect exposure by purchasing shares in publicly listed companies with a logistics focus.

A direct investment generally requires substantial capital, comprehensive due diligence, and ongoing asset management. For private investors without industry experience, this can present a challenge. Real estate funds, by contrast, provide access to professionally managed portfolios even with moderate capital.

Another option is investing through a Real Estate Investment Trust (REIT), which allows private investors to invest in commercial real estate. This model is less common in Germany than in the United States or the United Kingdom, particularly with regard to specialized logistics REITs. Dividends are generally considered stable; however, share prices may fluctuate, as REITs are traded on stock exchanges similar to equities.

Conclusion

Investors who think long term, possess a certain level of knowledge about the logistics market, and wish to include this attractive segment in a diversified portfolio will find compelling opportunities in industrial and logistics properties. In some cases, small and medium-sized properties may offer higher yields than large-scale logistics assets. However, thorough analysis of location, tenant quality, lease structure, and cost factors remains essential and is the key to success.

Sustainability in logistics

The ecological footprint is increasingly becoming a return factor for logistics properties. Energy-efficient warehouses equipped with photovoltaic systems, heat pumps, and modern insulation reduce operating costs and enhance lettability. Investors are placing growing emphasis on ESG criteria (Environmental, Social, Governance), as these promise long-term value stability. Certifications such as DGNB (German Sustainable Building Council) or BREEAM (Building Research Establishment Environmental Assessment Methodology) are regarded as proof of quality.

Equity, monthly installments, fixed interest periods, and more: expert Thomas Lauffs explains the key factors of real estate financing.

Engel & Völkers Finance is the financing specialist within the Engel & Völkers Group. As an independent broker, the company works with more than 550 financing partners to find suitable solutions for purchases, new builds, modernizations, or refinancing. The following questions are among those most frequently asked of Thomas Lauffs.

When is the right time to seek financing advice?
Thomas Lauffs: It makes sense to know your financing budget even before you begin searching for a property. The first contact with our independent financing specialists should take place as soon as you start considering a purchase. Our team supports you from the initial consultation through to the disbursement of the loan—regardless of where and how you found your dream property.

How much equity do I need?
Banks generally require that at least the ancillary purchase costs (notary fees, property transfer tax, agent’s commission) be paid from your own funds—approximately 10 to 12 percent of the purchase price. For attractive interest rates, an equity share of around 20 percent of the property value is ideal. The more capital you contribute, the lower the risk for the bank—and the lower your interest rate will typically be. It is also good to know that financing beyond the purchase price is possible in some cases. Professional advice and a tailored financing concept make this achievable. We recommend comprehensive consultation with our experts.

Do you also arrange KfW loans?
Yes. As an independent financing intermediary, Engel & Völkers Finance collaborates with over 550 lenders and integrates government subsidy programs such as those offered by KfW into the financing structure in order to secure optimal conditions for purchasing or building a property.

When do repayments begin?
For existing properties, repayment of the loan usually begins in the month following the full disbursement of the loan amount. Some banks also allow you to agree on a specific start date for amortization. In the case of a new build, you initially pay interest only on the amounts already drawn down, in line with construction progress. Full amortization often begins once the property is completed and the total loan amount has been disbursed.

What happens in the event of payment difficulties?
Real estate loans are repaid over a long period of time. If you experience financial difficulties due to unemployment or illness, contact your bank immediately. Many modern loan agreements allow for temporary payment holidays or adjustments to the amortization rate. Proactive communication can prevent loan termination and protect your credit rating.

Can I repay my loan early?
Under Section 489 of the German Civil Code (BGB), borrowers may terminate their mortgage loan ten years after full disbursement with six months’ notice, free of charge—even during an ongoing fixed interest period. This can be particularly worthwhile if current interest rates are lower than the rate on your existing loan.

What happens after the fixed interest period ends?
When the fixed interest period ends—for example, after 15 years—the loan is usually not yet fully repaid. This is followed by refinancing. You then have two options: accept the prolongation offer from your existing bank or switch to another bank and refinance the remaining balance. We are also happy to assist you here and will review at an early stage—up to approximately 60 months before the end of the fixed interest period—which forward loans (secured refinancing options) may be suitable. Whether a forward loan makes sense depends on the current interest rate environment, expected rate developments, and your personal circumstances.

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What does your property mean to you?
Perhaps it’s the house where your children grew up, or the condominium you acquired as an important pillar of your retirement planning. Every stone carries a value that goes beyond the material. Now a tenant change is approaching, bringing with it questions: Who will live in these rooms? Will the rent be paid on time? How can I protect the substance of my property from wear, tear, or neglect?

Finding the “perfect” tenant is a demanding task. Given the flood of unqualified inquiries on online portals, the painstaking verification of income statements, and the legally secure drafting of the lease agreement, property owners often lose valuable time. The risk of making the wrong decision is significant, as a mismatched tenancy can cost not only nerves but also real money. We are here to spare you that stress.

Making renting a predictable process
Successful renting is much more than just placing an advertisement. It is a process that requires sensitivity, market expertise, and a strong network. At Engel & Völkers, we have structured this process into eight proven steps, ensuring maximum transparency and security for you as a landlord.

Non-binding initial consultationIn our first conversation, we clarify your expectations. Are you aiming for maximum yield, long-term rental security, or a temporary sublease? You discuss the fundamentals with your personal advisor.

Comprehensive rent determinationWhat rent is appropriate for the property and its location? We compare similar properties in your immediate neighborhood, assess the specific potential of your apartment or house, and determine a market-appropriate rent.

Compelling property listingsFirst impressions count. Using high-quality photography and precise descriptions, we create an engaging listing. It is presented in our shop windows, and digitally via newsletters and our website.

Tailored marketingDo you prefer broad placement on property portals and other digital channels, or a discreet approach? Together, we select the appropriate marketing tools, ranging from direct marketing to social media campaigns.

Scheduling viewingsWe organize property viewings and guide prospective tenants through your property. Appointments are coordinated to minimize disruption to your daily life. Priority is given to our registered client leads.

Complete transparencyWe keep you updated on the progress of marketing at all times, providing detailed viewing protocols and thoroughly reviewed application documents of potential tenants.

Contract & completionPrice negotiations require experience. We handle them on your behalf and assist you throughout the contract process, including connecting you with legal service providers if needed.

Hassle-free handoverOur service doesn’t end with the signing of the lease. We accompany the property handover and remain available for any questions or concerns afterward.

Local roots, global reach
As a landlord, you benefit from a referral system within the global Engel & Völkers network, allowing you to reach prospective tenants without regional limitations.

Whether it’s an expat from a multinational company or a young family from the neighborhood, we find the right tenant—someone who values your property as much as you do.

High ceilings, generous rooms, and original parquet floors: this well-maintained historic apartment perfectly combines classical architecture with modern comfort. Take a look with us at this remarkable property in Frankfurt’s prime location.

The beautiful Altbau apartment is situated on the Beletage of a villa built around 1900 in the heart of Westend-Süd. The neighborhood is considered one of Frankfurt’s most desirable residential areas, with cafés, boutiques, and green spaces as close as schools, daycare centers, and the city center.

Those impressed by the elegant Gründerzeit façade from the outside will be even more captivated upon entering the Beletage. The apartment offers six stylish rooms across approximately 175 square meters, all connected by grand double doors. It features two balconies and a true rarity for a historic property: an exterior lift providing barrier-free access.

Ceilings of up to four meters, elaborate stucco work, and original parquet flooring further enhance the impressive overall effect. The floor plan is intelligently designed, with all rooms directly accessible from the central hallway. At the front of the apartment, facing south, three interconnected rooms form the heart of the living area.

The kitchen has not yet been fitted, offering complete freedom to design it as a communicative centerpiece of the home.

Particularly striking is the large conservatory, offering a relaxing view of the greenery. The property’s quality is evident in every detail, from window sills made of Tuscan Carrara marble to other refined touches throughout.

The apartment also impresses with practical features: a large archive in the basement, equipped with water and electricity, can be used as a gym or studio. Electric shutters and a garage space are included. Excellent connections to the main train station, airport, and highways make it especially convenient for commuters.

Beyond its features, however, the property truly captivates with its atmosphere and presence. The essence of this Beletage cannot be measured in numbers or square meters.

View the full exposé now

Sonja Debus, Head of Agent Recruiting D-A-CH, on entering the real estate profession—regardless of age or career path.

What qualifications are needed to work as a real estate agent for Engel & Völkers?
Sonja Debus: Key factors are willingness to learn and motivation. Ideal candidates are people-oriented, empathetic, and strong communicators. Those with life experience, resilience, and a “can-do” attitude are particularly successful. A background in business administration can help, as can an understanding of real estate—knowing what is in a land register or which building materials were used in which decade, for example.

Is there a typical agent profile?
No—successful agents come from a wide range of industries and life stages. They might have been executives in business, or worked in education, architecture, or the arts. Some even start a new career with us after retirement. What matters most is enthusiasm for the work and a passion for real estate. Despite all the technology, this remains a “people’s business,” so personal competence outweighs formal certificates.

What are the entry opportunities?
There are always openings. At Engel & Völkers, agents may be employed or self-employed, work full- or part-time, and focus on sales or rentals, residential or commercial properties. Opportunities vary by location. My team and I always discuss the right type of employment personally with interested candidates. Tip: send us your application proactively and specify your preferred region. Local connection is key—knowing and identifying with your city or district is one of our core strengths.

What career paths and development opportunities exist?
You can become a senior agent, take on team leadership, or move into strategic positions. Engel & Völkers offers many possibilities—both predictable and surprising. Good ideas are heard. Thanks to our global presence, there are also opportunities to transfer to other locations nationally or internationally.

How is professional development supported?
We have an in-house academy offering workshops and courses on all relevant topics, from renovations to tenancy law to intercultural communication. Currently, there are around 350 courses available online and in-person. New agents receive a one-week sales training and personal onboarding at their location.

Why Engel & Völkers?
The answer is clear: the strong brand opens doors with clients. Our extensive network of offices enables regional and even international sales, greatly expanding the client base. Our technical infrastructure is state-of-the-art and continuously improved by our development team. And, not least, you’ll work alongside many inspiring people worth getting to know.

Write your own success story.
Join our global network as an independent real estate agent (m/f/d).

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Engel & Völkers as Team Sponsor

Against the backdrop of the Wilder Kaiser, the Bendura Bank Snow Polo World Cup Kitzbühel 2026 took place—with top international players, 15,000 visitors, and a premium supporting program.

For three days in Reith near Kitzbühel, everything revolved around polo, horses, and lifestyle.

The Bendura Bank Snow Polo World Cup Kitzbühel 2026 offered not only fast-paced matches set against the stunning Wilder Kaiser but also an extensive supporting program. Around 15,000 visitors enjoyed perfect winter weather and an electrifying atmosphere on the snow-covered Kitzbühel Polo Grounds. Engel & Völkers contributed as one of the team sponsors, helping to make this high-profile event a success once again.

A tradition spanning over 20 years
The event has an impressive history: organizer Tito Gaudenzi, himself a successful polo professional, founded Kitzbühel Polo in January 2003—with Engel & Völkers as a partner from the very beginning. Since then, the event has become one of the world’s leading polo tournaments. Year after year, professional players gather to compete in international teams. The supporting program around the polo field, in numerous pavilions and the VIP tent, consistently delights guests with excellent entertainment and exquisite cuisine.

Eight teams and 120 horses in action
This year, eight polo teams from nine nations participated. A total of 120 horses were used—a remarkable number explained by the nature of the sport: each team consists of four players, and each player has three to four polo ponies available, deployed according to their individual skills. Over the three tournament days, twelve high-caliber matches were played—from the preliminary rounds and placement matches to the grand final. The team Allianz secured the tournament victory.

Engel & Völkers with a strong presence
In their own pavilion on the event grounds, Engel & Völkers showcased a selection of exceptional properties, including estates in Tyrol and Mallorca. Maria Rauscher and Florian Hofer, managing directors of Engel & Völkers Alpenregion Tirol & Zell am See, were delighted that so many valued clients attended. Real estate experts from several D-A-CH locations also used the occasion for in-depth discussions and networking with their guests. “It was a thoroughly successful event that already makes us look forward to the next edition in January 2027,” summarized Maria Rauscher.

Your experts for the Alps
From Kitzbühel to Zell am See: planning an investment in the region? Leverage the local market expertise of Engel & Völkers Alpenregion Tirol & Zell am See.