European real estate investment increases, and the expectations of the total uncertainty

The real estate sector in Europe is recovered at the pace after years of undergoing activity, with investment sizes increasing in a quarter of a quarter of a quarter of a quarter of the past 12 months, according to a new research from the CBRE business group.

Investment in European real estate increased by 6 % annually to 45 billion euros ($ 51 billion) in the first quarter of 2025 with macroeconomic morale and low interest rates. Investment volumes increased by 25 % annually throughout the year to 213 billion euros.

The flows were extensive across sectors, with live assets such as multiple housing and students’ housing that leads this charge, an increase of 43 % throughout the year. The sector was previously defined as a higher goal for real estate investment across the European borders, according to Wiping the intentions of the European investor for the year 2025 from CBRE.

The retail investment was closely followed, 31 % on an annual basis over the past 12 months, and an increase of 26 %-more than any other-in the first quarter of 2025.

Hotels, industrial, logistical and offices also witnessed an increase in annual flows by 23 %, 19 % and 16 % during the past year, respectively. Meanwhile, health care was the only sector to record low investment volumes during this period.

Data reflects similar visions of the real estate company in the United Kingdom RightWhich was martyred earlier this month with the appearance of investment volumes in the first quarter in the offices, industrial and retail sectors in Britain.

It comes as the real estate sector in Europe showed Signs of improvement In 2024, after the European Central Bank and England Bank moved to reduce interest rates, growth horizons improved across the various major markets.

However, CBRE warned that the recent tension of global economic morale – led by the new customs tariff system in the United States – could affect the appetite for investing to move forward.

“It has started in 2025 a strong start, as the assets of retail, living and offices appear attractive to investors in particular,” said Chris Brett, head of the capital market in Europe.

“However, we are aware of the rapidly changing macroeconomic environment and expected a more careful approach to both sellers and buyers in response to market fluctuations.”

The International Monetary Fund reduced last week 2025 global growth expectations To 2.8 %, a decrease of 0.5 percentage points from its previous appreciation, citing American tariffs as a “great negative shock to growth”. The Financial Authority has also reduced its growth forecast for the euro area this year to 0.8 % from 1 % previously.