The European real estate market is at a defining moment, with the upcoming months set to play a crucial role in shaping the strength and sustainability of the sector’s recovery, according to Cushman & Wakefield’s latest TIME Score.
The TIME (Timing Investment Market Entry/Exit) Score combines historical real estate market data and economic indicators to assess current cyclical positioning and signal conditions and directionality.
Scores range from one (contraction) to five (expansion), with a reading towards the higher end suggesting that current conditions are favourable, signalling an opportune time to invest as most variables align positively.
In the Q1 2025 TIME Score, the all property figure remained steady at 3.0 since the previous quarter, maintaining its position at the critical inflection point.
In its latest update, Cushman & Wakefield highlighted a much-needed improvement in momentum indicators, which are a vital factor in the continued recovery of the market and signal a rebound in investor confidence, suggesting that the market is beginning to stabilise and regain its footing
Sukhdeep Dhillon, head of EMEA forecasting at Cushman & Wakefield, said: “As we start a new market cycle, the decisions and developments over the next few months will set the tone for the future trajectory of Europe’s commercial real estate market. Our analysis shows that the market is on the cusp of an expansion phase, which suggests that now is an optimal time to deploy capital.”
James Chapman, head of EMEA capital markets at Cushman & Wakefield, added: “With borrowing costs becoming more favourable and debt availability improving, we are witnessing a growing confidence among borrowers and lenders that property prices have largely recalibrated to the higher rate environment. Therefore, it is a good time to start deploying capital more aggressively into the CRE sector.
“With inflation easing and economic conditions improving, investors are feeling more optimistic about the future. Major investments, such as those by Modon in London and Blackstone in central Europe, indicate a strengthening market and it points to an active MIPIM this week. Although there are still challenges, the recent positive momentum suggests a strong recovery is on the horizon, creating a favourable environment for well-timed investments. Keeping a close watch on these changes will be essential to take advantage of emerging opportunities.”
