According to the latest study by Savills, investment volume in European real estate is expected to reach €52 billion in Q1 2026, an increase of 6% year-on-year. Finland, Ireland, and Poland are expected to see volume growth of 50% or more compared to Q1 last year.
Savills expects investment activity in the core markets of Germany, the UK and France to also increase over the course of the year. Total investment in Europe is expected to increase by around 16% in 2026, followed by further growth of 17% in 2027, according to Savills.
Lydia Brissy, Director, European Commercial Research at Savills, says: "In terms of sector activity, we have seen several large portfolio transactions in multi-family housing, and hotels have also seen strong activity. Retail, logistics and offices recorded solid investment levels, resulting in an overall relatively balanced mix of sectors."
James Burke, Director, Global Cross Border Investment at Savills, says: "We expect investment volumes in Europe to continue to grow over the course of the year and expect prime yields to increase by 25 basis points or more in some countries, particularly for high street real estate, retail warehouses, logistics, supermarkets and offices in central business districts."
