What’s driving investment in Europe? Insights from across the continent
Investors are turning to Europe for relative stability
2 minutes to read
Our European researchers came together at our 2025 European Commercial Research Conference in Prague to collaborate, exchange ideas and strengthen connections. In this video, recorded during the event, our local experts share the latest insights and perspectives from their respective markets.
Key insights:
• Europe remains the main draw for global investors, benefitting from a shift towards safe haven markets and offering relative stability and liquidity from a global perspective.
• Lower interest rates and a favourable swap rate differential in the Eurozone compared to the UK and US make the region relatively more attractive to international investors as well as those capitalising on currency and hedging benefits. The 5-year Euribor swap rate continues to trend lower year-on-year, making financing conditions relatively more accretive for real estate investors.
• Eurozone economic growth is projected to remain modest amid geopolitical volatility and uncertainty around US trade policies. However, regional variations remain, with Spain forecast to lead growth. Outside the bloc, Poland and the Nordics are expected to be among the strongest performers in 2025.
• Investors remain focused on sectors underpinned by long-term structural drivers. Logistics continues to stand out, particularly in Poland and Belgium, with Romania also presenting growing opportunities, fuelled by rapid e-commerce expansion. Meanwhile, the residential sector continues to demonstrate resilience in key cities including Berlin, Vienna and Warsaw. Belgian nursing homes and student accommodation are also attracting growing investor attention.
• Momentum is building in the office sector, especially in cities experiencing robust rental growth and limited new supply. Prime office rents are rising in hubs such as Paris CBD and Prague, supporting a more positive outlook for this segment.
• The retail sector is regaining traction, following substantial repricing in recent years. In Prague, prime retail assets in core locations are expected to see continued rental growth, drawing investor interest in the sector. In Poland emerging retail opportunities are being supported by robust growth in consumer spending.
Read more in our H2 2025 European Commercial Outlook.