Property continues to form the core foundation of portfolios held by wealthy families across the German-speaking region. As determined by investment manager KINGSTONE Investment Management in cooperation with the Family Office Real Estate Day organised by RUECKER EVENT as part of the second KINGSTONE Family Office Real Estate Report 2026, the average property allocation stands at 53.7 per cent. While this represents a slight decline compared to the previous year's figure of 56.5 per cent, it underscores the persistently high significance of the asset class. Equities follow as the second-largest segment at 19.6 per cent, virtually unchanged from the previous year.
For the survey, 34 family offices from Germany, Austria, and Switzerland were polled on their current allocation structures and future plans. Dr Tim Schomberg, Chief Executive Officer of KINGSTONE IM, emphasises that property continues to represent the backbone of major private wealth, and that family offices, with an allocation exceeding fifty per cent, remain far more committed to tangible assets than traditional institutional investors.
Significant decline in German exposure in favour of international markets
A fundamental shift is apparent in the geographical focus of property assets. Although Germany remains the most important investment location with a share of 76.5 per cent, it recorded a significant drop of 11.8 percentage points compared to 2025, falling from an earlier 88.3 per cent. In parallel, investors noticeably expanded their commitments across other European markets to 12.6 per cent, representing an increase of 6.7 percentage points. Exposure to the United States rose by 3.6 percentage points to reach 9.0 per cent.
Philipp Schomberg, Co-Founder of KINGSTONE IM and CEO Poland, explains that the growing interest in international property stems from the ambition of many families heavily invested in Germany to achieve broader risk diversification. In advisory discussions, the United Kingdom and Poland are frequently highlighted as preferred target markets.
Residential property leads use types while retail gains ground
In terms of sectoral distribution, the residential segment maintains the top position with a share of 37.0 per cent. Office properties follow at 22.7 per cent, representing a modest reduction of 2.3 percentage points. Mixed-use commercial and residential properties account for 13.5 per cent of portfolios, while retail real estate ranks fourth at 12.1 per cent. This sector posted a notable year-on-year increase of 5.8 percentage points.
- —38.2 per cent of surveyed family offices intend to make annual investments of between EUR 5.0 million and EUR 10.0 million over the coming three years.
- —23.5 per cent plan an annual acquisition volume of EUR 10.0 million to EUR 20.0 million.
- —14.7 per cent of investors target allocations of between EUR 20.0 million and EUR 50.0 million per year.
- —Only 5.9 per cent aim for volumes between EUR 50.0 million and EUR 100.0 million, whilst no participant anticipates transactions beyond the EUR 100 million mark.
Return expectations span a range of 4.0 to more than 10.0 per cent total return per annum. At 35.3 per cent, the largest group of participants anticipates an annual return of between 5.5 and 7.0 per cent, whilst a further quarter targets 7.0 to 8.5 per cent. Over the coming twelve months, around a third plan to maintain a constant property exposure. Approximately 41 per cent of respondents intend to expand their holdings slightly or significantly, whereas 26 per cent seek a reduction.
