Europe’s real estate market is ending 2025 on a strong note, with investment volumes expected to hit about €77 billion in the final quarter alone. That’s a 12% increase compared to the same period last year, according to new research from Savills. If the trend holds, total investment for 2025 will reach roughly €215 billion—up 9% from 2024 and signaling renewed confidence across the region.
Several countries are leading the rebound. The Czech Republic, Finland, Portugal, Denmark, Belgium, Spain, Sweden, Hungary, and Norway are all on track to post investment growth of 20% or more compared to last year, showing that momentum isn’t limited to just Europe’s biggest markets.
Where Investors Are Focusing for 2026
Savills highlights three main strategies investors are leaning into as they look ahead to 2026.
Core and Core+ assets remain the backbone of many portfolios. High-quality office buildings in prime city centers continue to attract capital thanks to low vacancy rates and strong tenants. Hotels are also in demand, especially in established, year-round destinations such as France, the UK (with London standing out), Italy, Spain, Portugal, and Greece. Residential assets in major cities are proving resilient as well, supported by chronic housing shortages and steady demand. Even retail is stabilizing, with top high streets benefiting from rising tourism and improving occupancy.
Value-add opportunities are drawing attention from investors willing to take a more hands-on approach. Older offices in central locations are being upgraded to meet stricter ESG standards, while logistics and light industrial properties—particularly those tied to last-mile delivery—continue to offer growth potential. Retail parks, shopping centers, and niche sectors like self-storage, cold storage, dark kitchens, EV charging, and open-air storage are also gaining traction for their higher yields and more resilient income streams.
Opportunistic plays round out the picture. Investors are targeting outdated office buildings with redevelopment potential and properties that could benefit from planning changes. Conversions from commercial to residential use remain especially popular in cities facing acute housing shortages.
Global Capital Is Flowing Back In
Cross-border investment remains a major force, accounting for around 45% of total activity. European investors—particularly from the UK, France, and Sweden—are increasingly looking beyond their home markets. Interest from Middle Eastern investors is also picking up after a cautious period, while North American buyers continue to play a major role on both the buying and selling sides.
Looking Ahead
Savills expects European real estate investment volumes to grow by around 18% in 2026 as pricing stabilizes, economic conditions improve, and institutional capital flows back into the market. Offices are set to regain momentum as confidence returns to prime assets, while residential and other living sectors are likely to remain some of the most sought-after investments.
After a challenging few years, Europe’s property market is clearly finding its footing again—and for many investors, the next cycle is already taking shape.
Title: “Europe’s Property Comeback: Real Estate Investment Gears Up for a Strong 2026”
Europe’s real estate market is ending 2025 on a strong note, with investment volumes expected to hit about €77 billion in the final quarter alone. That’s a 12% increase compared to the same period last year, according to new research from Savills. If the trend holds, total investment for 2025 will reach roughly €215 billion—up 9% from 2024 and signaling renewed confidence across the region.
Several countries are leading the rebound. The Czech Republic, Finland, Portugal, Denmark, Belgium, Spain, Sweden, Hungary, and Norway are all on track to post investment growth of 20% or more compared to last year, showing that momentum isn’t limited to just Europe’s biggest markets.
Where Investors Are Focusing for 2026
Savills highlights three main strategies investors are leaning into as they look ahead to 2026.
Core and Core+ assets remain the backbone of many portfolios. High-quality office buildings in prime city centers continue to attract capital thanks to low vacancy rates and strong tenants. Hotels are also in demand, especially in established, year-round destinations such as France, the UK (with London standing out), Italy, Spain, Portugal, and Greece. Residential assets in major cities are proving resilient as well, supported by chronic housing shortages and steady demand. Even retail is stabilizing, with top high streets benefiting from rising tourism and improving occupancy.
Value-add opportunities are drawing attention from investors willing to take a more hands-on approach. Older offices in central locations are being upgraded to meet stricter ESG standards, while logistics and light industrial properties—particularly those tied to last-mile delivery—continue to offer growth potential. Retail parks, shopping centers, and niche sectors like self-storage, cold storage, dark kitchens, EV charging, and open-air storage are also gaining traction for their higher yields and more resilient income streams.
Opportunistic plays round out the picture. Investors are targeting outdated office buildings with redevelopment potential and properties that could benefit from planning changes. Conversions from commercial to residential use remain especially popular in cities facing acute housing shortages.
Global Capital Is Flowing Back In
Cross-border investment remains a major force, accounting for around 45% of total activity. European investors—particularly from the UK, France, and Sweden—are increasingly looking beyond their home markets. Interest from Middle Eastern investors is also picking up after a cautious period, while North American buyers continue to play a major role on both the buying and selling sides.
Looking Ahead
Savills expects European real estate investment volumes to grow by around 18% in 2026 as pricing stabilizes, economic conditions improve, and institutional capital flows back into the market. Offices are set to regain momentum as confidence returns to prime assets, while residential and other living sectors are likely to remain some of the most sought-after investments.
After a challenging few years, Europe’s property market is clearly finding its footing again—and for many investors, the next cycle is already taking shape.
