According to the latest Savills analysis, the purchase volume of cross-border buyers of European office properties has recovered significantly. French SCPIs remain active in regional cities in the UK, have expanded their exposure to Central and Eastern Europe (CEE) and are turning their gaze to the Nordics for higher returns. Norwegian (+297%), Japanese (+264%), Czech (+61%) and Spanish (+27%) investors, as well as buyers from the United Arab Emirates (+51%), each invested significantly more in European offices in 2025 than the average of the previous five years.
Savills notes that banks remain willing to finance high-quality, centrally located offices, which gradually improves liquidity for those with large lot sizes. Office investment in Spain rose to over €1 billion in the first quarter of 2026 – following the sale of the Edificio Estel office building in Barcelona by Bain Capital and Freo Group to InmoCaixa, which Savills advised. In Paris, the sale of 83–85 Avenue Marceau to Hines for €243 million is another indication of an improvement in market liquidity.
In the first quarter of 2026, average prime yields for European office properties remained stable at 4.9%. Bucharest rose by 20 basis points, Barcelona, Madrid and Manchester by 25 basis points each, while Prague fell by 10 basis points.
Mike Barnes, European Office Research Director at Savills, says: "Overall, fundamentals remain attractive to investors: average prime rents for offices rose by over 4% last year, and we expect a further 3.7% growth this year, reflecting the undersupply of high-quality space. As project developers' margins continue to come under pressure, many projects are likely to be delayed."
James Burke, Director, Global Cross Border Investment at Savills, says: "According to RCA data, over €3 billion of office space was acquired in continental Europe in 2025 for the purpose of revitalisation or conversion – the strongest year since 2021."
With regard to the German office investment market, Karsten Nemecek, Deputy CEO Germany and Head of Capital Markets Germany at Savills, classifies the current development as follows: "In Germany, too, market activity is increasing again and we are seeing more properties in sales processes, accompanied by more realistic price expectations and a greater willingness to negotiate on the seller's side. In a market environment that continues to be characterized by selective demand, this speaks for at least a moderate increase in the number of transactions. Private investors and family offices in particular are currently playing an important role in the German market and have recently increasingly purchased office properties, which also contributes to market liquidity."
The report can also be found online at: https://www.savills.com/research_articles/255800/386951-0/spotlight--european-office-investment---q1-2026
