In 2025, the European commercial real estate sector demonstrated remarkable resilience, with overall transaction volumes holding steady compared to the prior year. While the fourth quarter experienced a slight downturn in activity, recording €71.5 billion in deals—a 9% decrease from the same period in 2024—the aggregate annual performance of €224.9 billion indicated a market on solid ground. This stability is partly attributable to positive adjustments made to earlier quarterly figures, which helped offset the year-end dip and painted a picture of underlying strength.
Several factors contributed to this balanced outcome, including a growing interest in non-traditional real estate assets and robust activity in key national markets. Non-traditional sectors emerged as a significant force, capturing approximately 18% of the total transaction volume, equivalent to around €45 billion. This trend reflects investors' increasing appetite for diversified income streams and growth opportunities beyond conventional property types. Concurrently, specific countries like the United Kingdom, France, and Sweden showcased impressive gains. The UK market, in particular, saw a strong rebound driven by demand in industrial, office, and seniors housing segments, while Sweden's growth was fueled by its vibrant apartment market. These regional and sectoral bright spots underscore the dynamic nature of European commercial real estate, where targeted investments are yielding positive returns despite broader market fluctuations.
The sustained transaction volumes in European commercial real estate in 2025, despite some quarterly fluctuations, reflect a mature and adaptable market. It highlights that even amidst shifting economic landscapes, opportunities for investment and growth continue to emerge for those who are strategic and forward-looking. This environment encourages innovation in asset classes and a keen understanding of regional market dynamics, ultimately fostering a healthy and evolving real estate ecosystem.