According to a recent analysis by Savills, the European real estate investment market remained robust overall in the third quarter of 2025. According to preliminary results, transactions worth almost 37 billion euros were recorded. Although this is slightly below the level of the third quarter of 2024, the investment volume in the period from January to September 2025 is expected to total around 130 billion euros – an increase of almost 1.5% compared to the same period last year.
At the beginning of the third quarter, a significant slowdown in investment activity was observed in several European countries, partly because investors adjusted their strategies to the ongoing geopolitical uncertainty and partly because of the holiday season.
However, long-term fundamentals for European real estate remain strong, underpinned by the fact that several large individual properties and portfolios have entered the market in recent months, which has helped to boost confidence.
James Burke, Director, Global Cross Border Investment at Savills, said: “The outlook for the European investment market in the final quarter of 2025 remains cautiously positive. Despite ongoing geopolitical tensions, we expect a strong final quarter in the investment market for almost all of the European countries we monitor. Encouraging signs include a growing number of individual properties and portfolios being put on the market, which appear to be attracting more interest from investors again. The volume of investment in individual asset classes such as retail and office properties is also increasing, while demand for residential and industrial properties remains high.”
Lydia Brissy, Director in the Savills European Commercial Research Team, says: “Although we have revised our full-year forecasts slightly downwards due to lower activity in the second and third quarters of the year, we continue to expect a 7% year-on-year increase by the end of the year, with total transaction volume in Europe expected to reach €210 billion in 2025. The growth is expected to be driven primarily by markets such as the Nordics and Southern Europe, where several large transactions have been completed in recent months and many ongoing transaction processes remain in place.”
