Office real estate is in the lead again.The offices attracted about 2.1 billion euros, showing an increase of more than 60% compared to the first quarter of 2025. Twelve of the 24 largest transactions were in this asset class.
The residential segment took the second place with a turnover of about 1.7 billion euros and a market share of about 19%, although the result was significantly weaker than last year. Industrial and warehouse real estate rounded out the top three with a volume of 1.4 billion euros, which is 16% more than last year. Medical real estate also showed good results (about 1.1 billion euros).
The market development was mainly provided by German investors, who concluded deals totaling 5.1 billion euros, which is 26% more year-on-year. Their share was almost 60%. Foreign investors brought in 3.5 billion euros, which is 12% more than a year earlier, but their activity remains below average.
Profitability indicators are stable so far compared to the end of 2025. However, experts warn that in the face of geopolitical challenges and rising inflation expectations, the market is on the verge of another recalibration of prices and yields.
"We assume that the market will gain momentum due to the increased supply. Open-ended real estate mutual funds will step up efforts to optimize portfolios, and banks will begin putting properties on the market, Lemley concludes.
Source: CBRE
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