Real estate markets show mixed trends in Germany and the UK

The European real estate market is showing divergent trends in 2026. In Germany, the EXPO REAL Trendindex indicates a cautious outlook, with 40 percent of respondents describing the market as “restrained” or “very restrained.” However, investment activity is rising; transaction volumes in Germany increased by 13 percent to 15 percent in the first half of 2026, driven largely by residential and logistics properties.

In the United Kingdom, the residential market is facing increased instability. During the second quarter of 2026, an estimated 71,959 property transactions collapsed, representing a 6.6 percent increase compared to the previous quarter. While these volumes are lower than the same period in 2025, the financial impact of failed sales is growing. The total cost of these fall-throughs rose to approximately £257.9 million, with the average cost per failed transaction reaching £3,584.