The capital structure of real estate companies will be under close scrutiny in 2026. Following the shift in interest rates, investors are examining not only debt levels, LTV, and maturities, but above all the ability to generate liquidity through operations.
For residential real estate companies focused on apartment privatization, one question thus becomes central: Which properties can actually be converted into sales, cash flow, and financial flexibility under current market conditions?
The interest rate environment has stabilized but remains significantly more relevant than it was during the low-interest-rate phase. At the beginning of 2026, the ECB’s deposit rate stood at 2.00%, and the main refinancing rate at 2.15%. As a result, rollover financing, bond maturities, and variable interest rate components continue to be carefully evaluated.
Matching Maturities with Sales Proceeds
A resilient capital structure is created when maturities, liquidity reserves, and expected sales proceeds are aligned. This is precisely where residential privatizers differ from traditional property owners.
For property owners, the focus is often on ongoing rental income. For residential privatizers, individual sales serve as an additional source of liquidity. It is therefore important for investors to determine whether planned sales—in terms of both timing and value—are sufficient to meet financing needs, interest payments, or maturities.
The key question is:
- Which liabilities will come due in the next 12 to 36 months?
- What sales proceeds are realistic over the same period?
- Which apartments are already marketable?
- Which properties are subject to restrictions due to tenancy laws, neighborhood protection, or conversion requirements?
- How quickly can individual apartments or sub-portfolios be sold?
Capital structure is therefore not merely a balance sheet issue. It depends directly on whether properties can be converted into cash under real market conditions.
Market Liquidity: Smaller Deals, Greater Selectivity
The German residential investment market shows signs of cautious stabilization in 2026 but remains selective. In the first quarter of 2026, investment volume in the German residential market stood at approximately 1.65 billion euros. At the same time, the number of transactions rose to 57, while the average deal size fell to 29 million euros.
This development is significant for the capital structure. Smaller deals and fewer large-volume portfolios mean that liquidity is generated more through individual transactions, clear property quality, and realistic pricing.
Berlin as a Test Market for Housing Privatization
Berlin remains a relevant market for assessing housing privatization. The average asking rent in 2026 will be 15.80 euros per square meter. At the same time, the supply of rental housing remains low, while asking prices for condominiums are rising slightly.
When it comes to capital structure, it is not so much the individual property value that matters as the combination of demand, regulation, and marketability. A vacant apartment in a well-connected location in Charlottenburg, Friedrichshain, or Prenzlauer Berg follows a different liquidity logic than a rented property in a regulated neighborhood with low existing rent, neighborhood protection, or energy-efficiency investment needs.
In Berlin, several factors directly influence valuation and marketability:
- high demand for rental apartments
- low supply liquidity in the rental segment
- differentiated price trends by district and micro-location
- rental indices, rent control, and rent caps
- neighborhood preservation and conversion requirements
- Energy efficiency investment needs in the existing housing stock
- Different buyer groups for vacant and rented apartments
For investors, therefore, it is not enough simply to know whether a property portfolio is located in Berlin. What matters most is which units in which micro-locations are actually marketable, at what price, and within what timeframe.
LTV Requires Operational Context
The LTV remains a key metric, but it reflects only part of the capital structure. A lower LTV can signal stability. A higher LTV can be sustainable if the portfolio is liquid, sales are predictable, and maturities are well-managed.
For residential property privatization companies, the quality of the capital structure is closely linked to the ability to sell individual units at market rates. A large portfolio without sales capacity leaves little room for maneuver. Sales capacity without a well-organized financing structure also remains limited.
Insights for Investors
By 2026, investors will be evaluating real estate companies more closely based on the interplay between financing, market liquidity, and operational execution. Capital structure reveals how resilient a company is to interest rate levels, maturities, and selective transaction markets.
For investors, therefore, three questions take center stage:
- How transparently are maturities, interest expenses, and financing instruments presented?
- What liquidity can be generated from sales and residential privatization?
- How resilient are market position, portfolio quality, and sales capabilities under current conditions?
This interplay is particularly evident in the Berlin housing market, where demand for housing, limited supply, regulatory complexity, and selective capital markets all converge. For investors, this creates a clear framework for evaluation: capital structure, portfolio quality, and sales capabilities must be assessed collectively.
Review Current Financial Information
Capital structure can only be assessed in conjunction with current financial data, maturities, and operational performance. ACCENTRO’s financial reports, key metrics, and capital market information bring together the relevant data for further analysis.
