DWS real estate funds face liquidity crisis and devaluation

DWS is facing significant pressure across its flagship open-ended real estate funds, including Grundbesitz Europa, Grundbesitz Global, and Grundbesitz Fokus Deutschland. In September 2026, the Grundbesitz Europa fund experienced a 7.3 percent devaluation. The company is implementing new measures to manage liquidity, such as redemption surcharges and temporary suspension of redemptions if withdrawal requests reach 10 percent of available liquid assets.

The crisis is driven by a combination of high interest rates and a decline in demand for commercial office space due to remote work trends. These factors have lowered property values and caused investors to shift capital toward higher-yielding cash and fixed-term deposits. Since the end of 2022, approximately 6 billion euros have been withdrawn from the Grundbesitz Europa fund alone, with 570 million euros exiting in the first seven months of 2026. Total assets under management across these three DWS funds amount to roughly 8 billion euros.