Recovery of European retail markets continues in 2025

European retail markets continued their strong recovery in the first quarter of 2025, reaching a new high since 2018, according to research by Union Investment.

European Retail Attractiveness Index

The Global Retail Attractiveness Index (GRAI) reached 115 points, reflecting positive sentiment among retailers and consumers, as well as strong underlying economic conditions. This upward trend, a continuation of the recovery that began in 2022, saw growth in seven European countries. However, looming trade tariffs and slowing GDP growth pose potential short-term challenges.
The Czech Republic and Sweden saw robust gains, increasing by 12 and 7 points, respectively. While Poland still leads the EU-15 index with 136 points (despite a small dip), the Czech Republic (129 points) and Portugal (121 points) round out the top three performing countries. Germany remained stable (112 points), while Austria saw a notable five-point increase to 97 points. Denmark (92 points) and Finland (93 points), however, experienced minor declines and are currently at the bottom of the rankings.
Henri Eisenkopf, director of Transactions Shopping Places at Union Investment, commented: "The majority of European retail markets are stronger three years after the crisis, with healthy fundamentals, above all rising retail sales, and intact labour market figures. Accordingly, we are also seeing improved sentiment among institutional investors, who are increasingly exploring opportunities to enter the retail sector again. After initially focusing on properties with value appreciation potential, investors in Europe are now increasingly looking for core properties across the entire retail spectrum, including shopping centres. For us as investment and asset managers, the current market phase, with its positive trend in the operating performance of retail properties, promises attractive yield contributions to the portfolio as well as good opportunities for profitable sales."