Real Estate Capital Market KPIs – updated every month for you
Our PwC Real Estate Monitor provides you with a range of monthly derived Real Estate Capital Market KPIs. Our analyses are based on major listed German Real Estate Companies and provide you with sound insights into developments in the real estate industry.
The Real Estate Industry
With more than 20 percent of national income before the automotive and engineering industries, the real estate industry is one of the largest economic sectors in Germany. The dynamic business environment opens up new growth opportunities, but also brings with it new challenges and risks. Market participants must ensure that they anticipate developments in the markets at an early stage. Therefore, their success depends to a large extent on valid market information. PwC’s Real Estate Monitor provides monthly information on key capital market benchmarks that highlight current trends in the real estate industry.
Real Estate Monitor, June 2025
German WACC (5.7%) reaches highest level in 12 months
Real estate shares rise despite market fluctuations
In May 2025, the PwC Real Estate Indices for residential and commercial property holders increased. While the index for residential property holders grew by +8.2% on average to 175 points, the index for commercial property holders rose by +2.4% during the same period, reaching 208 points.
The German government plans to extend the current rent cap law until December 2029, aiming to prevent significant rent increases for new tenants in areas with high demand. This law has been in place since 2015 and restricts rent increases to a maximum of 10% above the average local rent, except for newly built homes since 2014. Despite some criticisms and calls for change regarding its exemptions, the extension is seen as a temporary fix due to ongoing market stress and rising costs impacting average earners. For property holders, the inability to raise rents could lead to lower rental income and increased pressure on profit margins, challenging their financial strategies in high-demand areas.
Stock price data per company within the respective peer group is collected using the S&P Capital IQ Data Idem „IQ_ClosePrice_Adj“. Capital IQ defines the Close Price as: The closing price of the day, calculated once per day after the market close. Close prices are adjusted for stock splits, cash dividends, rights offerings, and spin-offs. The underlying peer groups are revised and adjusted once per year on 31 December. New players on the German real estate market are thus identified and included, while delisted companies are excluded.
“Reliable benchmarks are key for every investor in order to balance the information asymmetry in a real estate investment process.”
Real Estate Benchmarks
- PwC Real Estate Index
- WACC
- EBITDA Multiple
PwC Real Estate Index
The Index shows the development of respective peer group (residential and commercial) companies’ stock prices on a monthly basis. Stock price data per company within the respective peer group is collected from S&P Capital IQ and reflects the closing price of the day after adjustment for stock splits.
WACC
The WACC is the rate of return required by investors (both debt and equity) taking into account the systematic risk characteristics inherent in the business. The derived WACC is an average value of a peer group of German listed real estate companies as well as its global counterpart.
EBITDA Multiple
The EBITDA Multiple is a financial indicator that relates the enterprise value of a company to its EBITDA. We have derived the EBITDA Multiple based on last twelve month available EBITDA and the capitalized value for each company within the peer group (residential and commercial).
Real Estate KPIs
Relative valuation level based on sector-specific key figures
In order to gain insight into the changes in value of 19 major players in the German real estate market, we have analysed the sector-specific Real Estate KPIs FFO 1 and EPRA NTA from the financial periods FY2023, FY2024 and TFQ2025 (TFQ: Trailing Four Quarters). We have put the share prices as of the balance sheet dates 31 Dec 2023, 31 Dec 2024 and 31 May 2025 in relation to the above-mentioned key figures from the corresponding financial periods. The resulting average ratios by segment are shown in the figures below.
FFO 1 multiples and Price/EPRA NTA ratios by segment
The table below shows the individual FFO 1 multiples and Price/EPRA NTA ratios of our peer group by segment. The key figures relate to the financial periods FY2023, FY2024 and TFQ2025 and the share prices as of 31 Dec 2023, 31 Dec 2024 and 31 May 2025.
Reading example: TAG Immobilien AG was valued by the market at 14.4x of its FFO 1 as of 31 Dec 2024, whereas on 31 May 2025, it was valued at 14.9x of its FFO 1.
Valuation level (measured by RE KPIs)
Compared to the end of FY2024, Commercial's current valuation level (as of 31 May 2025) has decreased by +2.1% (FFO 1 multiple) and +2.8% (Price/EPRA NTA ratio). On the other hand, the current valuation level of Residential has increased by -1.8% (FFO 1 multiple) and -1.9% (Price/EPRA NTA ratio).
Previous Issues
Disclaimer (important notice): This publication includes information obtained or derived from a variety of publicly available sources. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft does not give any representation or warranty of any kind (whether expressed or implied) as to the accuracy or completeness of this publication. This publication has been prepared solely for general informational. Nothing in this publication should be construed as individual advice. Before making any decision or taking any action, you should consult the sources or contacts listed here. The graphics may contain rounding differences.
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