Spotlight: European Investment – Q1 2025 Preliminary Results and Forecasts
Despite short-term hurdles, the European real estate market is set to grow, with investment volumes expected to rise 13% YoY in 2025 and 25% in 2026
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Despite short-term hurdles, the European real estate market is set to grow, with investment volumes expected to rise 13% YoY in 2025 and 25% in 2026
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European office demand held steady in 2025, with vacancies at 9% and incentives tightening, and take-up forecast to grow 3% in 2026.
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European office investment set for 2026 rebound

Spotlight: European Office Investment – Q4 2025
European office investment set for 2026 rebound
Europe’s grocery sector will remain resilient, but growth is modest — leaving cost discipline, format agility and balance‑sheet strength as the key drivers of outperformance.

European grocery market outlook
Europe’s grocery sector will remain resilient, but growth is modest — leaving cost discipline, format agility and balance‑sheet strength as the key drivers of outperformance.
The beginnings of a descent in global interest rates during 2024 have brought a resurgence in some prime residential markets.
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Spotlight: Monaco – 2025
The beginnings of a descent in global interest rates during 2024 have brought a resurgence in some prime residential markets.

"Investment volumes continued to trend upwards in Q2, driven by greater consumer confidence and falling interest rates"

"The market seems to be bottoming out in terms of activity levels and pricing. European real estate investment volumes are estimated to reach approximately €44.5bn in Q2 2024, an 18% increase from the previous quarter. The investment volume for the year's first half is likely to exceed €74bn, roughly in line with H1 2023."

"With economic conditions brightening, the investment market has demonstrated a marked improvement in the first quarter of the year, even as the occupier market remains muted"

"Base rate falls will see consumer sentiment improve, which in turn will aid retail sales volumes"

"Take-up remains muted compared to the pandemic period, but is close to its pre-pandemic average"

"The investment market appears to be thawing"
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"Construction costs for a data centre increased by 6.5%, reaching an average of $9.1m per MW (€8.4m) across Europe. Zurich is still the most expensive market in Europe."

"As European investors await ECB rate cuts, preliminary results show the Q1 investment volume declined by 12%, though the investment curve is now showing signs of stabilisation"

"2023 was a year to forget for commercial real estate, but there are reasons for optimism in the logistics market"

"Is a switch to more accommodative monetary policy imminent, or will geopolitical events delay cuts?"
Exploring the global trends shaping the world of real estate, the 2025 edition of Impacts looks at why real estate needs to adapt and think differently given existing geopolitical, environmental and economic volatility.