Real estate investment in Europe grows by 28%
Last Updated on 16 April 2025 by Urbanitae
The European real estate market continues to show notable resilience, despite concerns over an economy that grew by just 0.7% in 2024. Initial estimates for the first quarter of the year suggest that real estate investment in Europe has exceeded €50 billion, according to data provided by real estate consultancy Savills. This 28% increase compared to the same period last year reflects renewed investor confidence in the property sector.
The positive trend is due to a broad-based recovery driven by macroeconomic stability in most European countries, as well as growing interest in certain key market segments, notably:
- Offices in financial districts – Especially in major capitals, where demand remains high despite the evolution of remote work.
- Hotels and tourism – The rebound in tourism has spurred increased investment in hotels located in key destinations.
- Data centers – Driven by technological growth and the rising need for more robust digital infrastructure.
- Retail and logistics spaces – Demand for shopping centers and logistics hubs continues to rise due to the growth of e-commerce.
- Living segment – Rental housing, student residences, and senior living are sectors with strong development potential.
Spain, a key investment destination
According to Savills, Spain has firmly established itself as one of the most attractive destinations for European investors, ranking just behind the United Kingdom and France. A survey conducted by the consultancy among international investors managing over €800 billion in assets revealed that more than 80% of respondents consider the Spanish market a top priority for investment in the coming months. Factors such as a favorable macroeconomic context, growing housing demand, and the dynamism of the tourism sector have positioned Spain as a key investment location.
Gonzalo Ladrón de Guevara, Executive Director of Capital Markets at Savills Spain, confirms:
“At the start of this year, we are seeing strong interest from institutional investors in Spain due to our macroeconomic context and the positive operational outlook across all asset classes.”
Positive outlook for 2026–2027
Projections for the rest of 2025 and the coming years remain optimistic. Savills estimates that real estate investment in Europe will reach €216 billion in 2025, representing a 13% rebound. Furthermore, forecasts for 2026 and 2027 point to continued positive growth, with estimated increases of 25% and 19%, respectively.
Growth at a global scale too
Globally, real estate investment is also on the rise. In 2024, total investment in the sector reached $828 billion (approximately €791 billion), marking an 8% increase from the previous year. This growth is spread across various sectors such as living, industrial, logistics, and hospitality, with a particularly notable recovery in the office sector, which grew by 7% after several years of uncertainty.
In the last quarter, total investment rose by more than 25%, creating a positive outlook for 2025. Savills forecasts continued improvement in investment, estimating an annualized growth rate of 20% in the coming years, driven by greater liquidity and the reactivation of asset disposals.
