Business · Markets · 13 hrs ago
Investors withdraw record sums from German property funds
Investors have withdrawn more than €13.4 billion from Germany’s open-ended property funds since interest rates began rising, exceeding withdrawals during the financial crisis.
These funds pool money to buy properties, including offices, shopping centres and hotels, and were long promoted as relatively safe investments.
Higher interest rates and growing doubts about property valuations have weakened confidence in the funds.
Market prices now sit well below official redemption values, with discounts widening across several major funds.
Deutsche Bank subsidiary DWS has restricted withdrawals from its Grundbesitz Europa fund, processing only 10% of redemption requests.
Investors seeking to sell sooner may have to use the stock market, where the fund’s shares have traded at discounts of more than 50% to its official value.
The withdrawal limits and steep discounts make it harder for investors to access their money, while the sources describe the industry’s situation as its most serious crisis yet.
Investors have withdrawn more than 13.4 billion euros from German open-ended property funds since interest rates began rising, exceeding outflows during the financial crisis.
The gap between stock-market prices and official redemption prices has widened, signalling growing investor distrust.
DWS has restricted redemptions from its Grundbesitz Europa fund, paying out only 10 percent of redemption orders.
Investors seeking to sell shares on the stock market face discounts of more than 50 percent for that fund.
- Who
- Investors in German open-ended property funds.
- What
- Investors are withdrawing record sums, while fund prices have fallen and DWS has restricted redemptions from one fund.
- When
- Since the start of the interest-rate turnaround; the article was published on 31 October 2026.
- Where
- Germany.
- Why
- The sources describe growing investor distrust and a difficult situation for property funds.
This story does not have two clearly opposing sides.
Outflows from open-ended property funds totalled 13.1 billion euros during the financial crisis.
Investors have withdrawn more than 13.4 billion euros from the funds.
The gap between stock-market prices and official redemption prices increased from 11.2 percent to 19.3 percent.
DWS announced it would sharply limit payouts to investors seeking to exit.
DWS began processing redemption orders for Grundbesitz Europa at only 10 percent.
- Total withdrawals
- More than 13.4 billion euros since the start of the interest-rate turnaround
- Financial-crisis outflows
- 13.1 billion euros between 2005 and 2008
- Price gap
- 19.3 percent, up from 11.2 percent since June
- DWS fund
- Grundbesitz Europa
- DWS redemption payout
- 10 percent of redemption orders
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