Europe’s commercial real estate market is beginning to recover. The upswing is selective and uneven, but it is real. Capital is returning where asset-level fundamentals are clear and execution risk is understood. This creates a genuine window of opportunity for Europe, but one that will only be realised if the region remains competitive and decisive.
After years of higher interest rates, stalled transactions and cautious capital, the market is adjusting to a more disciplined environment. The mood across the industry is constructive, but perhaps more grounded than in previous cycles. Conviction today is rooted in asset-level realism rather than broad macro calls. Cash flow, income durability and supply discipline are back at the centre of decision-making, where they belong. Europe’s commercial property market recorded its strongest quarter for dealmaking since the European Central Bank brought the era of cheap money to an abrupt halt in 2022. According to CBRE, investment volumes reached €86 billion in the final quarter of last year, taking full-year activity to €241 billion, a 13 per cent increase year on year. This does not mark a return to the last cycle, but it does suggest the long stand-off between buyers and sellers is beginning to ease, with scope for further capital to be deployed.
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