Economy, Real Estate

European Real Estate Investment Volumes Soar to €206bn in 2024, Marking a 23% Increase

The European real estate investment market has witnessed a remarkable resurgence in 2024, with total investment volumes reaching €206 billion. This represents a 23% increase compared to 2023, signaling renewed confidence among investors and a shift in market dynamics. According to the latest data from global real estate...

22 Mar 2025 4 min reading

European Real Estate Investment Volumes Soar to €206bn in 2024, Marking a 23% Increase
The European real estate investment market has witnessed a remarkable resurgence in 2024, with total investment volumes reaching €206 billion. This represents a 23% increase compared to 2023, signaling renewed confidence among investors and a shift in market dynamics. According to the latest data from global real estate advisor CBRE, a significant portion of this growth occurred in the final quarter of the year, with €68 billion transacted—a 32% jump from Q4 2023. This surge highlights the growing optimism and increased demand across the continent’s real estate sectors.
Sector Growth Across Europe
Investment activity in European real estate was broadly distributed across all major sectors, demonstrating a well-rounded recovery. The hotel sector, buoyed by the continued revival of tourism, saw an impressive rise in volumes, increasing by 34% to €19.5 billion. This growth reflects the increasing confidence in hospitality assets as the tourism industry continues to recover and flourish post-pandemic.
The living sector, encompassing residential real estate, outperformed expectations in 2024, becoming the most favored asset class in Europe for the first time. Investment in this sector grew by 29%, totaling €46 billion. This surge can be attributed to growing demand for rental properties, especially in urban areas, as well as the persistent housing supply shortage in many European cities.
The industrial and logistics sectors also continued to benefit from the ongoing rise of e-commerce, with investment volumes climbing by 21% year-on-year, reaching €40.5 billion. The demand for modern logistics facilities and warehouses, particularly in key distribution hubs, remains strong as the shift towards online retail continues.
However, it was the office sector that provided some of the most encouraging signs of a rebound in 2024. Investment volumes here increased by 11%, reaching €42.2 billion. While the office market had struggled in recent years due to the remote working trend, signs of recovery are now apparent, with businesses increasingly adopting hybrid work models that continue to drive demand for flexible office spaces and high-quality buildings in prime locations.
The retail sector, which had faced challenges in recent years, saw renewed investor interest in 2024. Retail investment volumes grew by 26%, reaching €33.9 billion. Following a period of rent adjustments and asset repricing, the sector has become more attractive to investors, especially with forward returns now looking more compelling. A particularly strong performance in the fourth quarter, where €12 billion worth of retail assets were transacted, demonstrated that the sector has found new appeal.
Market Performance by Country
On a country level, the recovery in European real estate investment was widespread, with all major markets seeing significant growth. The UK and Germany, traditionally the largest markets in Europe, led the way with investment volume increases of 23% and 21%, respectively. Both markets continue to attract institutional investors due to their size, stability, and liquidity.
Other European markets also performed strongly, with Sweden showing the most impressive growth, up 58% from 2023. Italy followed closely behind with a 47% increase, while the Netherlands saw a 36% rise, and Norway posted a solid 25% growth. These countries have benefitted from a combination of factors, including a robust economic recovery, favorable interest rates, and strong demand for both residential and commercial real estate assets.
Conclusion
The European real estate market in 2024 has experienced a remarkable recovery, with investment volumes across all major sectors showing impressive growth. The shift in investor sentiment, driven by economic stabilization and the revival of key sectors such as tourism and retail, has set the stage for continued growth in 2025. As investors look to capitalize on the evolving market, the diversity and resilience of the European real estate sector offer promising opportunities across a range of asset classes and geographic regions.
As the market continues to recover, it will be interesting to see how different sectors perform and how investors navigate the shifting dynamics of the European economy. With continued growth and a positive outlook, 2024 is poised to be a defining year for the European real estate market.

Economy, Real Estate