European commercial property investment volumes rose sharply in 2024, signaling renewed confidence among investors. Full-year transactions across key property types reached €183 billion, up 22% from €150 billion in 2023.
Analysts attribute this growth to a combination of stabilizing economic conditions and positive market sentiment. After years of uncertainty in Europe’s commercial real estate sector, investors are increasingly willing to commit capital to offices, retail, and industrial properties.
The industrial and logistics sector, in particular, saw robust demand. E-commerce growth continues to drive the need for modern warehouses and distribution centers, pushing investment volumes higher. Meanwhile, office properties in major cities also attracted significant activity, as companies expand or upgrade their workspaces in response to changing workplace trends.
Retail properties experienced a steady increase in investment, supported by consumer spending recovery across Europe. Investors are showing confidence in well-located shopping centers and high-street properties, anticipating stable rental income and long-term returns.
Geographically, the largest markets in Western Europe led the surge. Germany, France, and the United Kingdom accounted for the bulk of transaction volumes. These countries benefit from strong economies, transparent property markets, and reliable legal frameworks, making them attractive to both domestic and international investors.
In Central and Eastern Europe, transaction volumes also increased, though at a slightly slower pace. Investors are drawn to these markets by attractive yields and emerging economic hubs, especially in countries such as Poland, the Czech Republic, and Hungary.
Experts note that low interest rates and the availability of financing continue to support investment activity. With borrowing costs remaining manageable, investors are more inclined to acquire high-quality assets. Additionally, a more stable macroeconomic outlook has reduced risk perceptions, further boosting market activity.
Sustainability and ESG (Environmental, Social, and Governance) considerations are increasingly influencing investment decisions. Investors are focusing on energy-efficient buildings and properties that meet modern sustainability standards. These assets often command higher valuations and attract long-term tenants, aligning financial returns with environmental responsibility.
Market observers expect European commercial property investment to remain strong in 2025. Continued economic growth, tenant demand, and interest from global investors are likely to sustain transaction volumes. However, potential risks include inflationary pressures and geopolitical uncertainties that could affect investor confidence.
Overall, the 2024 figures reflect a clear recovery in Europe’s commercial real estate market. A 22% increase in transaction volumes shows that investors are regaining trust in the sector and are willing to pursue opportunities across multiple property types and regions.
The rebound in European commercial property investment highlights a shift toward renewed optimism. Market participants are focusing on long-term prospects, strategic acquisitions, and modernizing assets to meet evolving business needs. As confidence strengthens, the sector is positioned for continued growth and resilience.
