The buildings of Haussmann architecture will be reflected on October 10, 2023 on the facade of the Samaritaine department store in the center of Paris.
Dimitar Dilkoff | AFP | Getty pictures
After years of cautious activities, the real estate sector in Europe is recovering, whereby the investment volumes have risen by a quarter in the past 12 months, as new researches from the Commercial Property Group CBRE make up.
Investments in European real estate rose to 45 billion euros (51 billion US dollars) annually in the first quarter of 2025, since improved macroeconomic mood and lower interest rates were observed. Investment volumes rose by 25% to 213 billion euros in the course of the year.
The inflows are based on sectors, with living assets such as several apartments and student houses rising by 43% over the course of the year. The sector has previously been identified as the top destination for cross-border real estate investments, according to the European investor's survey in 2025 by CBRE 2025.
In the past 12 months, retail investments have increased by just around 31% compared to the previous year and increased in the first quarter of 2025-more than any other sector of 26%.
In hotels, industry and logistics and offices, an increased annual inflows of 23%, 19% and 16% were also recorded last year. The healthcare system has now been the only sector that recorded lower investment volumes over the course of the period.
The data reflects similar knowledge of the British real estate company RightmoveIn the beginning of this month, a revival in the investment volume was listed in the main office in the first quarter, in the industrial and retail sector in Great Britain.
It happens that the real estate sector in Europe showed signs of improvement in 2024 after the European Central Bank and the Bank of England have reduced interest rates and improved the growth prospects in various key markets.
Nevertheless, CBRE warned that a pillars of global economic mood led by the new US tariff regime could have been considered in the future in the future.
“In 2025, retail, residential and office assets look particularly attractive for investors,” said Chris Brett, head of the capital markets for Europe at CBRE.
“However, we are aware of the rapidly changing macroeconomic environment and expect a cautious approach from both sellers and buyers as a reaction to market volatility.”
The IMF last week reduced its global growth forecast from 2025 to 2.8%, which has dropped by 0.5 percentage points compared to its earlier estimate, whereby the US tariffs cited as a “main negative shock for growth”. The tax authority also reduced its growth outlook for the euro area this year from 1% to 0.8%.