Press Release
European Real Estate Investment Climbs to €241 Billion in 2025, Fuelled by Big Gains in the Healthcare Sector
January 28, 2026
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Director
Investment into European real estate climbed to €241bn in 2025, up 13% on 2024, according to the latest data from global real estate advisor, CBRE. €86bn was transacted in the final quarter of the year, up 14% from Q4 2024, demonstrating the continued resurgence in investment activity, supported by improved financing conditions.
All major sectors, except industrial, recorded higher investment volumes for the year. For the second year running, hotels saw the largest year-on-year increase (13%), reaching €23bn, while retail investment rose 11% to €38bn. Living continued to account for the greatest share of investment activity, with volumes up 9% to €53bn. Renewed confidence in the office sector resulted in volumes reaching €47bn, also up 9%.
The European healthcare sector recorded its best-ever year with volumes of €22.8bn, up 285%. CBRE’s 2025 UK Healthcare Sentiment Survey found that 93% of investors planned to increase their healthcare allocations, driven by the sector’s demand dynamics, stable operational performance, and robust returns. The UK accounted for almost two thirds of activity (65%) in 2025, with a handful of multi-billion-pound deals completing, followed by the Nordics at 11%.
Across major markets, Italy and Spain recorded investment volumes increases of 36% and 30% respectively. 2025 marked the best year on record for Italy with €13.5bn, driven by activity in the retail and hotel sectors. The UK, which accounts for 30% of European investment volumes, saw volumes reach €73bn, up 9% and the highest level since 2018*.
*When calculated in local currency, GBP.
Figures exclude Living sector investment in France during Q4 2025.
Improved investor sentiment and a competitive lending market contributed to increased investment activity across Europe.
Global capital continues to seek stable, countercyclical assets amid ongoing economic uncertainty, and this is reflected in significant capital deployment into sectors such as healthcare and living.
Markets in Southern Europe are seeing increased investor interest, reflecting attractive returns and strong performance expectations. Meanwhile, portfolio and platform deals have increased in prominence, providing buyers with access to new sectors and markets at scale, a trend we see continuing into 2026.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.