T
he European real estate sector is experiencing a strong recovery, with investment volumes rising by 25% over the past year to €213 billion. According to CBRE's research, improved macroeconomic sentiment and lower interest rates have driven this growth, with investment in European real estate increasing 6% annually to €45 billion in the first quarter of 2025. Living assets such as multiple dwellings and student housing led the charge, with a 43% increase over the year.

    Retail investment followed closely behind, rising 31% year-on-year over the past 12 months, and increasing 26% in the first quarter of 2025 - more than any other sector. Hotels, industrial and logistics, and offices also saw increased annual inflows of 23%, 19%, and 16% respectively. In contrast, healthcare investment volumes declined.

    CBRE's findings mirror those from UK real estate firm Rightmove, which reported a resurgence in first-quarter investment volumes in Britain's key office, industrial, and retail sectors. However, CBRE warns that the recent souring of global economic sentiment could impact investment appetite going forward. "2025 has got off to a solid start," said Chris Brett, head of Capital Markets for Europe at CBRE, "but we anticipate a more cautious approach from both sellers and buyers in response to market volatility."