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In the first half of 2025, the office and industrial sector constituted the largest commercial real estate sectors in Europe in terms of investments. Approximately ** percent of all property investments were allocated to these sectors. Offices remain a large portion of European real estate investment, despite recent fluctuations in demand and vacancy rates.

What decides an investment?

Multiple factors play a role in an investor’s or developer’s decision to invest: availability of land or assets, construction costs, economic conditions, currency volatility, interest rate movements, and many others. While many investors specialize in a specific type of real estate, market demand also influences their choices. According to industry experts, among the main issues impacting investments were construction costs, availability of suitable assets/land, and European economic growth.

European leaders in the real estate market

In 2024, European investment in commercial property totaled almost *** billion euros. Four European countries exceeded *** billion euros in commercial property investment: the United Kingdom, Germany, France, and Sweden. Looking at individual European cities, London, Paris, and Madrid were the ones with the highest investment and development prospects on the real estate market for 2025.