- Residential property transaction volume of €2.15 billion in Q1 2025
- 114 per cent above the previous year’s figure from Q1
- Price stability with 3.90 per cent prime yield
Cushman & Wakefield, a global real estate consultancy, recorded a transaction volume of EUR 2.15 billion in the German residential property market for the first quarter of 2025. The transaction market is gaining momentum, investor interest is increasing and many market participants are becoming more active.
Jan-Bastian Knod, Head of Residential Investment Germany at Cushman & Wakefield, comments: ‘The significant increase in the transaction volume compared to Q1 2024 shows a clear stabilisation of the market and strong interest in residential real estate, both from national and international capital.’
Focus on portfolio transactions, individual transactions also strong
Portfolio transactions totalling €1.26 billion took place in Q1 2025, corresponding to 59 per cent of the total transaction volume in the quarter. Individual transactions accounted for the remaining 41 per cent.
National investors continue to dominate the German residential market, with their share rising from 64 per cent of the transaction volume in the first quarter of 2024 to 71 per cent. Nevertheless, international capital remains very active: cross-border investor interest remains high.
Large-volume transactions at the start of the year
The Uniimmo:Wohnen ZBI Fund was able to sell another large portfolio at the start of 2025. Over 8,000 residential and commercial units were sold to the I-Wohnen Group.
In addition, a further 3,300 residential units from the Uniimmo:Wohnen ZBI fund were sold to Net Zero Properties of ZAR Real Estate. Net Zero Properties already acquired a portfolio comprising over 7,800 residential units from the ZBI fund last year.
In Berlin, Round Hill acquired two new-build projects from local developers, including an already KfW-40-certified project with 208 residential units in the northern district of Hohen Neuendorf, which already has an occupancy rate of 92%, and a project with 51 residential units in Erkner.
Price stabilisation largely complete
Market stabilisation is also evident at the start of 2025. Cushman & Wakefield currently sees trends of slightly falling yields in the residential property market.
Student residences and micro-living: high demand with low transaction volume
The demand for investments in student residences and micro-living remains high. However, the continued very low level of construction activity is currently still slowing down transaction activity in this segment, with a transaction volume of just €50 million reported to date. Jan-Bastian Knod concludes: ‘The strong start to the year confirms the upward trend in the transaction market and the high level of interest in residential property. Cushman & Wakefield assumes that the transaction volume for the year as a whole will be higher than in the previous year and could therefore exceed €10 billion.’
