European real estate investment surged to EUR 206 billion in 2024
GRI Club Europe
High-level content and networking, shaping the present and future of the real estate market
European real estate investment surged to EUR 206 billion in 2024, a 23% increase on the previous year, according to CBRE. This rise was driven by improved investor confidence and a particularly strong Q4, which saw EUR 68 billion transacted (+32% year-on-year).?
Savills' latest data confirms Europe's real estate market recovery, with their analysis revealing five key themes that are expected to shape the market in 2025:?
?? Global trade and political challenges;
?? Repositioning of obsolete buildings;
?? Technological advancements affecting workforce dynamics;
?? Real estate’s role in energy resilience;
?? The impact of extreme weather.?
Investors are likely to focus on well-located assets requiring active management, particularly in alignment with ESG standards, with annual investment volumes projected to rise to EUR 214 billion in 2025 (+23%).?
Meanwhile, Savills' 2025 EME Investor Sentiment Survey reveals a growing appetite for risk, with 45% of investors planning to increase their exposure, particularly in Spain, Italy, Portugal, and Poland, while core markets like the UK, France, and Germany remain strong.?
?? Schroders' recent report highlights growing European industrial and logistics investment opportunities, particularly in northwestern Europe, where mid-sized logistics assets, single-tenant industrial properties, and last-mile distribution are attracting increasing interest due to resilient demand and rental growth.?
Industry leaders will convene in London on February 27th for the GRI UK & Europe Reunion 2025, engaging in open roundtable discussions on these key market issues, with topics ranging from investor perspectives and geopolitical shifts to data centres and the debt funding gap.
2024 European office sales hit lowest levels since 2009
European office sales fell to their lowest level since 2009, with transaction volumes dropping 10% year-on-year to just EUR 42.4 billion in 2024, as higher borrowing costs and the shift to remote work continued to suppress demand.?
?? Large office deals struggled, with properties such as London’s CityPoint and ‘Can of Ham’ towers failing to attract buyers unless they met high ESG and sustainability standards.?
While newer, energy-efficient offices remained in demand, many transactions involved properties intended for redevelopment or refurbishment. As a result, the office sector accounted for just 22% of total real estate investment, nearly half its share from 2019.?
?? However, the broader commercial property market showed signs of recovery, with total investment rising by 4% year-on-year to EUR 188.8 billion, following a 2-year slump that drove investors towards the residential, hospitality, and industrial sectors.?
A particularly strong Q4 2024, with EUR 55.6 billion in CRE transactions, highlighted growing investor confidence outside the office market.?
?? Investors are now seen to be prioritising residential, industrial, and student accommodation assets, signalling a longer-term shift in real estate strategies towards sustainability and resilience.?
As well as panels on what to expect next from the office market at the GRI UK & Europe Reunion 2025, taking place in London on February 27th, GRI Club is also hosting an exclusive Club Meeting on Offices and Flexibility in France on March 6th in Paris.
Cautious optimism & new investment trends in CEE real estate
The 2025 Deloitte Real Estate Confidence Survey signals cautious optimism in Central & Eastern Europe (CEE), with over 80% of respondents expecting economic stabilisation, while ESG compliance and labour costs remain key concerns.?
?? 47% of investors plan to acquire more assets, focusing on PRS, data centres, healthcare, and new energy infrastructure, and debt finance availability is expected to remain stable.
Deloitte delivers again with the 2025 Central Europe CFO Survey providing insights from 654 CFOs across 14 Central and Eastern European countries, highlighting cautious optimism amid economic challenges.?
?? Inflation is expected to ease to an average of 2.9%, though CFOs remain more wary than macroeconomists.
Colliers’ 2025 CEE Real Estate Market Report also delivers a mixed outlook for CEE, with Poland leading regional GDP growth at 3.5%, while industrial real estate faces headwinds from Germany’s struggles.?
?? Romania outperformed its CEE peers with EUR 750 million in transactions (+58% YoY), according to Colliers, led by industrial deals like Globalworth’s EUR 278 million sale.?
Meanwhile, Cushman & Wakefield's MarketBeats highlights a recovery in Slovakia’s real estate in Q4 2024, particularly in the industrial, office, retail, and residential sectors, with Bratislava’s prime office rents rising to EUR 19.50/sqm.
?? Colliers' CEE Investment Scene Report shows a 70% YoY rise in investment volumes to EUR 8.8 billion, with Poland up 138%, while retail and hotels surged.?
Get all of the latest insights on the current status of CEE’s diverse real estate markets from the biggest players active in the region and across Europe at GRI Club’s CEE Forum - London Edition, taking place at the Four Seasons at Park Lane on February 26th.
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Supported by top-tier shareholders like BBVA, Merlin Properties, and GRUPO SANJOSE, CreaMNN exemplifies public-private collaboration with state, regional, and local administrations to make this initiative a benchmark for modern urbanism.
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