The European real estate market is poised for a gradual recovery in 2025, according to CBRE’s European Real Estate Market Outlook 2025. While challenges persist, real estate investment is expected to rise as the bid-ask spread narrows and the occupier market strengthens in the second half of the year, driven by an increase in leasing activity across most sectors.
“2024 marked a period of adjustment for the European real estate market. With inflation easing towards target levels and interest rates peaking, we are headed to a place of much-welcomed stabilization. This year, we anticipate economic growth to improve as lower interest rates encourage corporate investment and rising real incomes bolster consumer confidence,” said Tasos Vezyridis, executive director and head of thought leadership for Europe at CBRE.
“In 2025, investment activity will increase, with more assets coming to market, supported by improved financing conditions. Real estate investment is set
