Europe attracted €30bn in commercial real estate investment

Despite a slightly slower pace than predicted, European commercial real estate attracted significant investment in 2024, reaching €30 bn.

Conference presenting research by Scenari Immobiliari

The UK (€7.5 bn) and Germany (€6.7bn) led the market, while both Spain (€2.5 bn) and Italy (€2.6bn) saw substantial growth, with the latter registering its best performance in seven years, according to research by Scenari Immobiliari.
This positive trend continued into early 2025, with over €550 mln invested in the first quarter, the highest in five years, driven by retail and commercial property sales in key locations.
Well-located and modern shopping centers proved popular with investors. Experts predict a potential 20% increase in retail investment, reaching €35 bn in 2025, driven by anticipated lower interest rates, controlled inflation, and increased consumer spending.
Retail sales values and rents in major European countries saw a 1.5% average increase in 2024, with a further 2% rise projected for 2025. This growth is attributed to the increasing synergy between tourism and shopping centers, particularly in previously overlooked "secondary" locations. These areas are gaining popularity due to their growing appeal and their evolution into community hubs offering services, events, and meeting spaces.
Francesca Zirnstein, general manager of Scenari Immobiliari, commented: “The investment strategies of institutional operators are constantly evolving and are developing innovative leasing models that do not focus exclusively on the physical sales space but include real estate services with higher added value, digital communication tools, and strategic marketing partnerships."