Solid Start to 2025 for European Real Estate Investment Volumes

• Investment volumes increase by 6% in Q1 2025 compared with same period last year
• Most sectors record strong growth over the last twelve months, led by living assets
• Retail sector records the largest quarterly increase with volumes climbing 26% 

Investment into European real estate reached €45bn in Q1 2025, marking a 6% increase compared with Q1 2024, according to global real estate advisor, CBRE. Furthermore, investment volumes over the last twelve months* totalled €213bn, reflecting a 25% increase compared with the previous twelve-month period.

Most sectors saw increased investment activity. Sustained demand for living assets supported a 43% increase over the twelve months ended in Q1 2025. The sector was identified as the top target for investors looking to deploy capital in 2025 in CBRE’s European Investor Intentions Survey.

Retail followed with a 31% year-on-year increase over the twelve-month period, as investors continue to act on the sector’s rent resets and asset repricing. Retail recorded a 26% increase in Q1 2025 volumes, the most of any sector.

Over the last twelve months, Hotels, Industrial and Logistics and Offices recorded investment volume increases of 23%, 19% and 16% respectively. According to CBRE’s research, Healthcare was the only major sector to record lower volumes over this period.

At a country level, capital deployment has been widespread over the past twelve months with the two largest markets, Germany and the UK, recording increases of 24% and 17% respectively. Other large markets showed compelling increases, including Italy (up 67%), Spain (up 37%), and the Netherlands (up 29%).

*The last twelve-months is inclusive of Q2 2024-Q1 2025.