Reversionary potential
The gap between passing and market rent is the strongest lever, as long as it can legally be realised.
Asset classes · Residential
Residential
Residential remains the most sought-after asset class in Germany, but not at any price. Regulation, deferred maintenance and the cost of debt decide what a portfolio is really worth.
We place standing portfolios, individual apartment buildings, new-build districts and turnkey schemes with institutions, family offices and municipal housing companies. Lot sizes from around five million euros, considerably more in portfolios.
Price depends less on the gross initial yield than on the gap between passing and market rent — and on whether that gap can legally be closed at all. Conservation areas, capping limits and rent tables are the core of the calculation, not a footnote.
For new-build schemes there is the additional question of a forward sale versus a sale on completion. Both work, but they lead to very different prices and security packages.
What we look at first
- Rent roll with lease dates, indexation and step rents
- Gap to the local comparative rent
- Conservation statutes and municipal pre-emption rights
- Maintenance backlog and energy performance
- Split potential and existing condominium structure
Key figures
- Lot size
- EUR 10 – 400m
- Typical buyers
- Funds, family offices, municipal companies
- Pricing basis
- Passing rent, market rent, capex
- Timeline
- 3 – 5 months
- Special topics
- Conservation areas, condo split, KfW standard
Value drivers
What moves the price here
Energy standard
Between a KfW 55 building and an unrefurbished period block sit dozens of basis points in the buyer's financing.
Pre-emption rights
Municipal rights can delay a deal by months. We clear that before marketing, not after.
Portfolio cut
A cleanly bundled regional portfolio often beats the sum of single sales — sometimes it is the other way round. We run both.
Process
How a sale runs in this segment
- Step 01
Data collection
Rent roll, land register, declaration of division, maintenance history and EPCs.
- Step 02
Valuation
Income approach plus scenarios for rent adjustment, refurbishment and a possible split.
- Step 03
Buyer universe
Institutions, private long-term holders and municipal companies, approached separately by size and location.
- Step 04
Marketing
Discreet or structured, depending on the tenancy and the need for confidentiality.
- Step 05
Closing
Coordination with notary, lender and, where relevant, the municipality on pre-emption.
From practice
What we see in real deals
Tenants make this a confidentiality issue
Once word spreads in the building, unrest follows. For tenanted assets we usually work off-market with tightly managed viewings.
The backlog cannot be argued away
Roof, risers, heating — buyers apply flat deductions. A maintenance plan with contractor quotes beats any flat assumption.
Splitting is no free lunch
It only works where genuine owner-occupier demand exists, and even there only after checking notice-protection periods and conservation rules.
Questions
What owners ask us
The points owners raise before a mandate — answered the way we would in a first call.
Do you also sell single apartment buildings?
Yes, from around five million euros. Below that we happily refer to partners in our network.
How do you handle conservation areas?
We check the statute upfront and only approach buyers whose acquisition profile fits. That avoids aborted processes.
Forward deal or sale on completion?
A forward deal brings certainty and liquidity during construction but costs margin. We run both before you commit.
Asset classes
What we cover
We advise on real estate and corporate transactions from EUR 20m across Europe, with a clear focus on the DACH region. Every asset class has its own buyer universe – these are the segments we work in most often.
Thinking about selling in this asset class?
Send us the key figures — you get an honest read on price and buyer universe.