Press Release
Strong Q4 Pushes European Real Estate Investment Volumes to €206bn
January 23, 2025
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Investment into European real estate reached €206bn in 2024, up 23% on 2023, according to the latest data from global real estate advisor, CBRE. €68bn was transacted in the final quarter of the year, up 32% from Q4 2023, reflecting a shift in investor confidence and sentiment across the region.
All major sectors saw increased investment activity for the year. Buoyed by the continued revival in tourism, hotels volumes rose 34% to €19.5bn. Living followed with a 29% increase, becoming the most preferred asset class in Europe for the first time, with €46bn of investment volumes in 2024. Industrial and Logistics also saw an increase, with volumes reaching €40.5bn, up 21% year-on-year, and there were promising signs for the office sector at €42.2bn, up 11%.
Forward returns in the retail sector have become more compelling following a period of rent rests and asset repricing. CBRE’s research shows retail investment volumes climbed to €33.9bn, up 26% from 2023. The sector benefitted from an impressive Q4, whereby €12bn of assets traded.
Encouragingly, recovery was widespread at a country level with the two largest markets, the UK and Germany, achieving investment volume increases of 23% and 21% respectively, in 2024. Other large markets showed robust increases compared with 2023, including Sweden (up 58%), Italy (up 47%), the Netherlands (up 36%) and Norway (up 25%).
Higher capital deployment towards the end of 2024 affirms our view that the market bottomed out early-on in the year. 2024 was a period of adjustment, as inflation continued to fall towards central banks’ target levels, energy prices had less impact on growth, and interest rates peaked. We’re confident that the market recovery is well underway and anticipate that activity levels will continue to gain momentum in 2025 as buyer and seller expectations converge, product flow improves, and more stable pricing allows investors to underwrite attractive returns.
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 (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.co.uk.