European real estate investment volumes to reach €130 billion for Q1-Q3 2025, a 1.5% year-on-year increase

While this is slightly down on Q3 2024, total investment volumes for Q1-Q3 2025 are forecast to reach c.€130 billion, up by almost 1.5% compared to the same period last year.

The start of the third quarter saw a noticeable slowdown in investment activity in several European countries as investors adapted their strategies to the ongoing geopolitical uncertainty and given the summer period.

However, the long-term fundamentals for European real estate remain strong, backed up by the fact that several large single assets and portfolios have entered the market in recent months, helping to boost confidence.

James Burke, Director, Global Cross Border Investment at Savills, says: "The outlook for the European investment market for the final quarter of 2025 remains cautiously positive. Despite ongoing geopolitical tensions, we anticipate a strong Q4 for nearly all European countries that we monitor. Encouraging signs include a growing number of sizeable assets and portfolios returning to the market, which appear to be attracting renewed interest from investors, and an increase in investment volumes for certain asset classes such as retail and offices, alongside the ongoing strong appetite for 'beds and sheds'."

Lydia Brissy, Director in Savills European commercial research team, says: "While our forecasts are revised down slightly due to slower activity levels seen in the second and third quarter of the year we are still anticipating a 7% year-on-year increase by year end, with total European investment volumes for 2025 projected to reach €210 billion. Growth is expected to be driven primarily by markets such as the Nordics and southern Europe where we have seen several large transactions complete in recent months and an ongoing strong pipeline of sales instructions."