Germany, Europe’s largest economy, has long been a key player in the continent’s real estate industry. However, the market has experienced a significant slowdown since early 2022, with real estate investment volumes declining sharply. As of January 2024, the 12-month value of real estate investments had dropped to 29 billion euros, which is a reflection of the broader economic uncertainties and shifting investor sentiment. Germany’s homeownership rate remains one of the lowest in Europe, just under 50%, making renting the dominant form of housing. The once-booming housing market has cooled since 2022, primarily due to rising mortgage interest rates, which have deterred prospective homebuyers. The increasing cost of borrowing has forced many potential buyers to either delay or completely abandon their purchasing plans, which has led to a stagnation in home sales. As a direct result, the demand for rental properties has significantly increased. The rental index reached 105.2 points in 2023, marking an increase of over five percent since 2020. This rise in rental demand has led to rising rents, which further burdens tenants amid broader inflationary pressures. Adding to the sector’s challenges, the residential construction industry saw its first revenue decline in 2023 since 2009. This slowdown, driven by higher material costs, labor shortages, and economic uncertainty, has led to delays and cancellations in housing projects, which spelled bad news for urban centers such as Berlin, Munich, and Frankfurt; the three being most affected by the housing shortage. The commercial sector exhibits a different dynamic. Shopping centers recorded the highest prime yields at 5.5% in 2023, making them the most profitable property type. However, this higher yield is often accompanied by greater risk, particularly in an era where e-commerce continues to challenge traditional retail spaces. Offices and logistics real estate also continue to attract investors.