European real estate investment demonstrated resilience in the third quarter of 2025, with preliminary transaction volumes reaching nearly €37 billion, according to the latest research from Savills.
While slightly below Q3 2024 figures, total investment volumes for the first nine months of 2025 are forecast to reach approximately €130 billion, reflecting a 1.5% increase compared to the same period last year.
The start of Q3 saw a slowdown in investment activity across several European markets, attributed to geopolitical uncertainties and the summer period.
Despite this, long-term fundamentals for the European real estate sector remain robust, with several large single assets and portfolios entering the market, boosting investor confidence.
James Burke, Director of Global Cross Border Investment at Savills, commented: “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 investor interest, 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, added: “While our forecasts have been revised down slightly due to slower activity levels in Q2 and Q3, we still anticipate 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 several large transactions have been completed recently, supported by a strong pipeline of sales instructions.”
Savills’ latest report underscores the resilience of the European real estate market and highlights the continued investor appetite across a broad range of asset classes, indicating positive momentum heading into 2026
