What role do international investors play in the German real estate market?

International investors play a major role in the German real estate market. Almost half (48%) of the market was dominated by foreign investors last year. This development demonstrates Germany's continuing attractiveness for international investors.

A Current trend is the transformation of real estate into tradable assets. The concept of compact living in the residential real estate sector and logistics projects in the area of last-mile delivery are particularly in demand.
Off-market investment properties worldwide

Investors differ in their strategies:

Core investors

prefer rented properties in prime locations with long-term rental agreements. These offer stability, but tend to offer lower returns.

Value-add investors

focus on properties with potential for value appreciation, for example through refurbishment or repositioning on the market.

Private equity and opportunistic investors

are looking for opportunities with a higher risk and opportunity profile.

Office and logistics properties are popular asset classes, but hotel, retail and residential properties are also attracting increasing attention.

The investor structure is balanced: European investors, primarily from France, Great Britain and the Switzerland, are strongly represented. There is also growing interest from investors from Asian countries, particularly Singapore.

The limited availability of real estate in Germany is currently slowing the further influx of foreign capital, but this is expected to change in the coming years.

In summary, Germany remains an attractive destination for international Real estate investors and is expected to retain its leading position in Europe.


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