European real estate investment to reach €77b in Q4 2025

Savills' latest research projects that European real estate investment volumes will reach approximately €77 bn in Q4 2025, marking a 12% increase compared to the same period last year. 

Offices - Savills

This is expected to bring the total investment for the year to around €215 bn, which is 9% higher than the volumes recorded in 2024.
Several countries are anticipated to experience substantial growth in investment volumes, with the Czech Republic, Finland, Portugal, Denmark, Belgium, Spain, Sweden, Hungary, and Norway all forecasted to see increases of 20% or more compared to the previous year.
Savills has also identified key investment opportunities in European real estate for 2026, categorised as Core/Core+, Value-add, and Opportunistic.
The Core/Core+ category includes high-quality office assets in central business districts, hotels in established year-round destinations (particularly in France, the UK, Italy, Spain, Portugal, and Greece, with increasing transaction volumes expected in Germany), institutional residential assets in major cities, and best-in-class high streets in major European cities.
In Value-add, opportunities exist in upgrading older offices, modern logistics assets, and retail parks/shopping centres with potential for re-leasing or repositioning. Emerging sectors like self-storage, cold-storage, dark kitchens, open-air storage, and EV charging stations also offer potential.
The Opportunistic category includes well-located offices with redevelopment potential and conversions (especially from commercial to residential) in markets with housing shortages.
James Burke, director, Global Cross Border Investment at Savills, said: “Based on deals signed since October and others already in the pipeline, we anticipate cross-border inflows to remain strong, maintaining an average 45% share of total activity. We expect to see even more European cross-border investment next year, fuelled by strong engagement from the continent’s traditional cross-border players, particularly British, French, and Swedish buyers expanding their presence outside their home markets in 2025 which we believe will follow through into the New Year. 2025 saw a tentative re-engagement from Middle Eastern investors in European real estate, a trend which we envisage will gain further momentum into the New Year. Meanwhile, North American buyers are set to remain active as both buyers and sellers, reinforcing their position as key participants in the market.”
Lydia Brissy, director in Savills European commercial research team, added: “European real estate investment volumes are forecast to rise by around 18% in 2026 as pricing firms up, macroeconomic conditions stabilise and institutional capital returns across the main sectors. Offices are expected to regain momentum as investors respond to attractive pricing and renewed confidence in prime assets, while the living sectors will continue to attract strong interest.”