European real estate investment volumes are forecast to surpass €50bn in Q1 2025, a 28% year-on-year increase, according to new research from Savills.
Most countries are set to record an increase in investment activity in the first quarter of 2025, with the Czech Republic, Portugal, France, Ireland and Romania likely to see the strongest growth compared with the same period last year.
As a result, Savills expects 2025 investment volumes to reach €216bn, representing a 13% annual increase.
James Burke, director, global cross border Investment at Savills, said: “While some geopolitical and economic headwinds remain, we are seeing a material uptick in interest for CBD offices, hotels, data centres and various retail sectors, in addition to ‘beds and sheds’. Robust, long-term occupational fundamentals are giving investors confidence to invest in European real estate.”
Lydia Brissy, director in Savills European commercial research team, added: “Despite some near-term challenges, the overall investment trajectory remains positive. The European real estate market is poised for further growth, with investment volumes projected to rise by 25% in 2026 and another 19% in 2027.”
