The paper analyses the characteristics of institutional investments in the German real estate market and refers to the study of ìInstitutional Investments in Real Estateî presented by Michael Truebestein and Wolfgang Schaefers at the 12th Annual European Real Estate Society Conference in Dublin (June 2005). In addition, the study identifies and evaluates current aspects and future trends in institutional investments in real estate ñ taking into account the specific institutional governance structure in Germany. More specifically, the paper will analyse general insights into the investment behaviour and investment criteria of German and international institutional investors in real estate as well as the volume of real estate investments. Thereafter, the study focuses on the behaviour of German institutional investors and their tendency to convert direct real estate assets into indirect real estate investments. This possible conversion is evaluated in regards to new investment forms such as real estate private equity/opportunity funds and fund of funds products as well as the likely introduction of real estate investment trusts (REITs) in Germany. In particular, the study focuses on the investment objectives in the different real estate markets as well as on the risk objectives and preferred vehicles and strategies for future investments in real estate. Finally the study will determine the importance of different valuation methods for real estate assets and conclude with a general outlook of future strategies and tendencies in institutional investments in real estate. The results of the paper are based on an empirical study, which will be performed by the author with questionnaires on 150 companies concerning real estate investment companies, insurance companies, pension funds and provision plan companies. Key words: institutional investments, real estate investments, investment behaviour