Apartment building in Germany

Interactively compare market data for various cities in Germany

Despite current economic and geopolitical challenges, the German market for residential and commercial properties, including multi-family homes, is considered a relatively safe investment. The fundamental data of many cities shows that this will likely continue in the long term. However, the developments are regionally different. Use our interactive graphics to compare current market data, such as transactions, prices and rental trends, across different cities in Germany. Our database is constantly being updated in the background.

Interest in residential and commercial properties in Germany remains high, as reflected in the transaction data: After a rise in transactions was observed in 2024, the positive trend continued in 2025. Our forecasts estimate 37,000 to 39,000 sales, which would represent an increase of 7 to 13% over the previous year. The transaction volume also increased in 2025, with an estimated turnover of between 35 and 38 billion EUR. EUR.

Despite a persistently stagnant economy and geopolitical challenges, a moderate increase in the number of transactions is expected for 2026. The recent developments in the Middle East conflict are, however, significantly impacting energy prices, building interest rates, and inflation rates. But an increased demand for housing in the coming years with limited offers will also make housing a desirable asset class and a long-term lucrative investment.

How are apartment rents developing?

For property owners, the high demand and limited offer in many places means that apartments are easy to rent, as the risk of rent default is very low. Especially in metropolitan areas and many university towns, there is a very high rental rate, making these markets particularly interesting for risk-averse investors. Furthermore, the need to renovate many existing properties creates solid potential for rent increases in many areas. Rents have been steadily rising across the board in recent years, particularly since 2020.

Trends that influence the rental market:

• Market scarcity: An ongoing net migration rate meets a stagnant offer. Although building permits increased slightly in 2025, relief through completions is not expected until late 2027.

• Low vacancy rates: According to the CBRE-empirica vacancy index, the market vacancy rate for multi-family housing was last nationwide at just 2.2%.

• Market development: In the fourth quarter of 2025, the average quoted rent nationwide was 10.42 €/m², an increase of 4.1% compared to the previous year.

• Renovation as a return-booster: Through the energy-efficient and substantial renovation of existing properties, additional rental price increases can be achieved that exceed the market average.

What prices and returns can be achieved with a multi-family home?

The current market situation offers attractive conditions for entry. While prices have stabilized and even increased slightly in some regions, significant investment opportunities have emerged, particularly in value-add strategies. With an average quoted price of €1,996/m² (Q4 2025), existing properties are priced around 5.5% below the 2022 peak nationwide. Additionally, the average price for new construction projects is at 4,019 €/m² (Q4 2025), which is double the price of existing properties.

Current opportunities in the market for residential investment properties:

• Investment potential: The price difference between existing properties and new construction allows for the financing of targeted modernization measures.

• Value Appreciation: Renovated existing properties in inner-city locations combine more moderate entry prices with high potential for appreciation.

• ESG Compliance: Through energy-efficient refurbishments and the use of government subsidies, existing portfolios can be positioned as ESG-compliant and future-proof for the long term.

The phase of rapid returns has ended. While rents have been developing positively for years, average prices are showing a moderate increase in the same direction. However, a compression of the yield in the course of 2026 remains unlikely. The gross initial yield in the Tier 1 cities is 4.1% (Q4 2025), which is still above the level of ten-year federal bonds. This positive spread confirms the ongoing attractiveness of residential and commercial properties as a stable asset class.

The residential investment market focuses on objects with optimization potential. The combination of stable cash flows, government subsidies for energy-efficient renovations, and the moderate price level of the existing portfolio makes the current market environment favorable for strategic portfolio development.