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Germany, the UK, and France had the largest commercial real estate markets in Europe in 2025, amounting to almost **** of the European market. The market size is based on the value of high-quality real estate as a percentage of each country’s GDP. In Germany, the market size of commercial real estate was about ****trillion U.S. dollars. 

Investment in commercial real estate

Although the United Kingdom had a smaller market size than Germany, it recorded a higher commercial real estate investment volume in 2024. Due to the unfavorable economic climate, transaction activity declined markedly that year, affecting the whole region. Many countries, such as Germany, Sweden, and Italy, saw investment plummet by approximately ** percent.

Most popular European cities among real estate investors

Industry experts consider a broad range of factors when allocating capital to real estate assets. Transport connectivity and a city’s economic performance, however, stood out as most important, according to a 2023 survey. Unsurprisingly, the capital cities of the UK, Spain, and France ranked as the European cities with the highest real estate prospects in 2026.