According to the published data, investment volume in German real estate for the first three quarters of 2025 reached €18.7 billion. The figure remains below the ten-year average but exceeds the result for the same period in 2024 by 11%. In the third quarter, transaction volume amounted to €7.2 billion, representing a 9% increase compared with the second quarter. 

The highest activity persists in the office and industrial segments. Office assets accounted for €5.6 billion over the first nine months of 2025, equivalent to 30% of all investments. The industrial and logistics sector generated €4.1 billion (a 22% share). The residential segment reached €3.3 billion, or 18% of the market. 

According to Savills, the third quarter saw an increase in mid-sized transactions. Deals in the €20–50 million range rose by 14% compared to the second quarter. At the same time, 11 transactions above €100 million were recorded, in line with the previous quarter. 

Regionally, the highest volumes were observed in Berlin, Munich and Hamburg, which together accounted for 53% of capital. Investment volume reached €2.9 billion in Berlin, €2.3 billion in Munich and €1.8 billion in Hamburg. 

Prime yields across key segments remained stable. Office assets recorded a prime yield of 4.1%, industrial assets 4.4%, and residential assets 3.5%. In the retail segment, the average yield stood at 4.9%. 

According to the report, international capital accounted for 38% of all investments, with the main sources being the Netherlands, France, the United States and the United Kingdom. The volume of leveraged transactions increased by 6% quarter-on-quarter, driven by lower borrowing costs in mid-2025. 

Savills forecasts that, assuming current activity levels in the office and logistics segments continue, total market volume for 2025 may reach €26–28 billion. 

Commentary from M24 Investment Division:

According to Savills, the German investment real estate market is showing gradual recovery. Transaction volume for the first nine months of 2025 reached €18.7 billion, exceeding the 2024 level. Growth is concentrated primarily in the office and industrial-logistics segments amid stable capitalization rates. Third-quarter dynamics confirm an increase in mid-sized transactions and a moderate inflow of international capital.