European real estate investment to reach €130b by Q3 2025

Savills' latest study predicts that European real estate investment will hit approximately €130 bn by the third quarter of 2025, marking a 1.5% increase from the previous year. 

London residential - Savills

Although the third quarter of 2025 saw a slight dip in investment compared to Q3 2024, with around €37 bn in transactions, the overall outlook remains positive. 
This brief slowdown in investment activity at the beginning of Q3 2025 was attributed to investors adjusting to geopolitical uncertainties and the typical summer lull. 
Despite these short-term factors, the underlying strength of the European real estate market is robust, as evidenced by the recent availability of several significant properties and portfolios, which is boosting investor confidence.
James Burke, director, Global Cross Border Investment at Savills, said: “The outlook for the European investment market for the final quarter of 2025 remains cautiously positive. Despite ongoing geopolitical tensions, we anticipate a strong Q4 for nearly all European countries that we monitor. Encouraging signs include a growing number of sizeable assets and portfolios returning to the market, which appear to be attracting renewed interest from investors, and an increase in investment volumes for certain asset classes such as retail and offices, alongside the ongoing strong appetite for ‘beds and sheds’.”
Lydia Brissy, director in Savills' European commercial research team, added: “While our forecasts are revised down slightly due to slower activity levels seen in the second and third quarter of the year, we are still anticipating a 7% year-on-year increase by year-end, with total European investment volumes for 2025 projected to reach €210 billion. Growth is expected to be driven primarily by markets such as the Nordics and southern Europe, where we have seen several large transactions complete in recent months and an ongoing strong pipeline of sales instructions.”