🏠 Germany’s residential investment market holds at €4.3 billion in H1 2026

Germany’s residential investment market reached €4.3 billion in the first half of 2026, roughly matching the prior year and pointing to stabilisation after a weak stretch. JLL also said activity rebounded in Q2, while average transaction size increased and institutional buyers remained active.

The data, published by JLL, suggests the market has moved out of its recent trough even as financing conditions and pricing gaps continue to shape deal flow. The firm’s separate June analysis also estimated an annual housing shortfall of about 80,000 units, underscoring how persistent supply constraints remain across the country.

Why it matters for investors

The combination of stable transaction volumes and larger average ticket sizes points to a market that is becoming more selective rather than broadly weak. Institutional capital appears to be returning to German residential assets, with scarcity in supply supporting long-term demand fundamentals even as high construction costs and interest rates keep new development constrained.

➡️ Residential deal activity in Germany is stabilising even though the housing shortage remains acute.

➡️ Larger average transactions indicate that institutional capital is still willing to commit to the sector.

The data leaves German residential property positioned as a defensive allocation theme rather than a fast-growth trade, with supply scarcity likely to support pricing discipline through the second half of the year.