European real estate investment volumes are expected to reach approximately €37.1bn in Q3 2024 – a 15% increase on the same period last year, according to the latest research from Savills.
Total investment activity for the year to date stands at €113.3bn – a 5% rise on last year, but still below the five-year average.
Savills forecasts that year-end investment volumes for Europe will reach around €170bn – a 15% increase on 2023 – with full year figures for 2025 potentially reaching €219bn.
In Southern Europe, Savills expects investment volumes will be up 11% year-on-year in 2024 with volumes in Central and Eastern Europe rising 16% year-on-year.
The company said the investment market in the UK is rebounding strongly, with activity increasing by 26%.
James Burke, director, global cross border investment at Savills, said: “The European real estate market is showing signs of increasing activity, particularly since the return from the summer break. A key boost came on 12 September, when the European Central Bank decided to cut interest rates for a second time, which positively impacted market sentiment across the Eurozone. Since then, investor interest has been growing, supported by improving pricing conditions and an increasing number of assets coming to market.”
Lydia Brissy, director of European research at Savills, added: “Across Europe, yields are expected to remain stable over the next six months, with compression likely for logistics assets and, to a lesser extent, retail parks. Shopping centre yields may continue to increase slightly. From March next year, the hardening of prime yields should begin to spread across asset classes throughout Europe.”
