European real estate investment hits €48b in Q3 2025

European real estate investment volumes reached nearly €48 bn in Q3 2025, marking a 10% increase compared to the same period in 2024, according to CBRE. 

Chris Brett

This brings the total investment over the past twelve months to €224 bn, an 18% rise from the preceding twelve months.
Continental Europe showed strong growth in Q3, with an 18% increase year-on-year. Spain and Portugal led this surge, seeing investment nearly double with increases of 91% and 87% respectively. The Benelux region, the Nordics, and Germany also had robust quarters, with gains of 43%, 40%, and 13%.
In contrast, the UK, Europe's largest market, experienced a 9% decrease in capital flows compared to Q3 2024. Despite this, CBRE anticipates a positive outlook for the rest of the year as more deals are expected to close.
Over the last twelve months, all property sectors recorded increased investment activity. Retail led the way with a significant 39% rise in volumes. The Living sector followed with a 20% increase, reflecting strong investor interest. Logistics and Office sectors each saw a 12% increase, while Hotels rose by 4%.
Chris Brett, head of Capital Markets for Europe at CBRE, stated: “Sentiment continues to improve across the region, with the Iberia market attracting levels of investment we haven’t seen for some time. Despite a weaker quarter, the UK remains a strong place to trade. It has a foothold on the global stage and overseas capital is acutely aware of its long-term appeal. Widespread, cross-sector interest tells us that investors see opportunities in most asset classes, depending on their preferred strategy, appetite for risk and desired returns profile. There is abundant potential in the living sector, and retail continues to catch the eye of a more diversified pool of capital. When we look at logistics, demand is still strong for the right product at the right price, and we’ve seen this with a number of large transactions completing in recent weeks.”