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European real estate investments are increasing, macro is the definition of clouds prospects

Haussmann architecture buildings are displayed on the facade of the Samaritan department store in Central Paris on October 10, 2023.

Dimitar Dilkoff | AFP | Gets the image

The real estate sector in Europe has been recovered at the pace of subsequent years, and in the last 12 months the investment has increased by a quarter over the last 12 months, according to CBR CBRE.

Investments in European real estate increased by 6% annually to 45 billion euros ($ 51 billion) in the first quarter of 2025 as macroeconomic moods and lower interest rates improve. Investments increased by 25% annually a year to 213 billion euros.

The tributaries were widely founded in different sectors, with live assets such as several living quarters and student housing that maintains a charge, which is 43% a year. According to data Survey of European Investors 2025 CBRE.

In the last 12 months, investments have been investing in retail, increasing 31% compared to last year, and increased by 26% more than in any other sector in the first quarter of 2025.

Hotels, industrial and logistics and offices have also increased annual tributaries of 23%, 19% and 16% over the last year. Meanwhile, health care was the only sector that recorded a lower investment during this period.

The data reflects similar ideas from the UK real estate firm The right homeWhich earlier this month referred to the revival in the volume of investment in the first quarter in the key office of Britain, industrial and retail sectors.

This happens as the real estate sector in Europe has shown Signs of improvement In 2024, after the European Central Bank and the Bank of England moved to the reduction of interest rates, and growth prospects improved in different key markets.

However, CBRE warned that the recent passage of global economic sentiment – partly heads the new US tariff regime – may weigh an investment appetite forward.

The European Real Estate Market, ready to recover in 2025, says CBR

“2025 began to start securely when retail, residential and office assets look especially attractive to investors,” said Chris Brett, head of the capital in Europe in CBR.

“However, we are aware of the changeable macroeconomic environments and are waiting for a more careful approach to both the sellers and the buyers in response to the market volatility.”

The IMF has reduced its last week 2025 global growth forecast to 2.8%, decreasing by 0.5 percentage from the previous estimate, citing tariffs in the US as a “main negative shock for growth”. The financial body also reduced its view for the eurozone growth this year to 0.8% from 1% earlier.

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