European retail investment surges 16% year-on-year

According to Savills' most recent study, European retail investment volumes have reached over €24.6 bn so far this year. 

European retail investment - Savills

This represents a 16% increase compared to the same period in 2024, and it's also 3% higher than the average for the first three quarters over the last five years. 
This recovery in retail investment is happening across Europe, with significant growth seen in countries like Belgium (+241%), the Netherlands (+180%), Denmark (+135%), Portugal (+128%), and Finland (+114%).
Shopping centers are particularly making a comeback, now representing 30% of all retail investments this year, up from 26% last year. This growth is mainly due to an increase in the number of larger-scale deals.
James Burke, director, Global Cross Border Investment at Savills, said: “The fundamentals of the retail market are clearly improving, drawing a wider range of investors back into the sector. Falling vacancy rates, renewed rental growth, and a very limited pipeline of new developments are all strengthening income prospects. This more supportive environment is encouraging larger assets and portfolio transactions to come to market, which in turn is broadening participation from a range of different buyer groups.”
Lydia Brissy, director, European Research at Savills, added: “Looking ahead, improving economic conditions and a stronger retail occupational market are expected to sustain investor appetite. Yield compression should remain gradual across Europe next year, with retail warehouses and high-street assets leading the way due to resilient tenant demand. Prime shopping centres are also set to benefit from growing institutional interest in large lot sizes, which should support liquidity and drive a slow but steady compression of yields in this segment.”