The international real estate advisor sees a broad-based recovery taking shape, with most countries set to record an annual increase in investment activity, with the Czech Republic, Portugal, France, Ireland, and Romania likely to see the strongest growth compared to Q1 last year.

As a result, Savills expects 2025 investment volumes to reach €216 billion, representing a 13% annual increase.

James Burke, Director, Global Cross Border Investment at Savills, says: “While some geopolitical and economic headwinds remain, we are seeing a material uptick in interest for CBD offices, hotels, data centres and various retail sectors, in addition to ‘beds and sheds’. Robust, long-term occupational fundamentals are giving investors confidence to invest in European real estate.”

Lydia Brissy, Director in Savills European commercial research team, says: “Despite some near-term challenges, the overall investment trajectory remains positive. The European real estate market is poised for further growth, with investment volumes projected to rise by 25% in 2026 and another 19% in 2027.”