According to Savills, the investment volume in European factory outlet centers (FOCs) increased to 653 million euros in the first half of 2025. This corresponds to a share of 3.2% of the total retail investment market in Europe – and is thus well above the ten-year average of 1.8%. By August 2025, the volume had totaled over one billion euros, indicating a dynamic second half of the year on the market.
At the same time, demand from brands for outlet space continues to rise. According to Ken Gunn Consulting, 588 new outlet stores have opened in Europe since July 2023. Rituals leads the way with 14 new locations, followed by Jack & Jones (12), Under Armour and Swarovski (10 each) and Skechers (9). The best-known tenants continue to include Levi’s, Guess, adidas, Puma and Tommy Hilfiger. “Thanks to high purchasing power and a still low outlet density compared to other European countries, Germany remains one of the most attractive expansion markets for many brands. This not only opens up opportunities to open up new stores and customer groups – outlets are also developing into an important sales channel for overproduction. In some cases, production is even already being carried out specifically for outlet sales. We therefore expect demand for space to continue to rise,” says Daniel Kroppmanns, Director and Head of Retail Agency Germany at Savills.
The upward trend is likely to continue: According to a brand survey by Ecostra, many companies plan to open an average of 2.7 outlet stores in 2025, an increase from 2.4 last year and thus the first growth since 2018. In the same survey by Ecostra, brands also indicated which countries in Europe offer the most potential for FOCs. The results show that Germany is the preferred destination – 35% are interested in expanding there in the next three years. It is followed by Spain (32%), France (27%), the United Kingdom (27%), Austria and Poland (both 16%).
Larry Brennan, Head of European Retail Agency at Savills, comments: “Outlet operators are increasingly investing in the experience factor as a key differentiator. Many are introducing pop-up formats and collaborations with local brands, modernizing their concepts through refurbishments, sustainable design, and improved services. These optimisation measures are intended to increase visitor numbers, promote repeat visits and appeal to younger, experience-oriented target groups.”
“Despite its niche positioning, which is characterised by limited liquidity and irregular transaction flows, investor interest in high-performance outlet properties remains,” says James Burke, Director of Savills Global Cross Border Investment. “The biggest restriction is still on the supply side: only a few owners are currently willing to sell functioning sites – especially since there are only a few investable properties on the market. Prime yields for outlet centers in Europe are currently between 6 and 7%. As a rule, they are 50 to 100 basis points above the yields of shopping centres, which currently average 6.15%. Given the increasing investor interest, we expect yields to decline slightly over the next twelve months.”
Spotlight: European Factory Outlet Centres
