Europe Real Estate Sector Report Spring 2025

This report provides an analysis of the Europe Real Estate sector as of Spring 2025. It outlines the current conditions and outlook for various property types, including office, industrial, residential, hotel, retail, data centres, healthcare, and student housing. The office sector has shown a positive capital value growth for the first time after nine negative quarters, although overall sentiment remains weak due to rising vacancy rates and structural challenges. The industrial sector is leading the recovery, with increasing market values and improved liquidity, particularly in Spain. Residential properties are also recovering, with notable performance in the Netherlands. The hotel sector has seen a surge in tourism and business travel, contributing to strong investor demand. Retail capital flow has increased, driven by consolidation and a focus on high-quality assets. Data centres continue to attract investment due to a supply-demand imbalance. Overall, the report indicates a cautious but improving outlook for the real estate market in Europe.