Using in-house forecasts, analysis and professional expertise, BNP Paribas Real Estate Investment Management has released its 2025 outlook for the European real estate market. As interest rates decrease, the real estate market is gaining momentum, specifically for multi-asset investors looking to rebalance their portfolios.
Niche sectors, such as data centers, hospitality and healthcare, are attractive assets for investors. Logistics also appears to be the best performing sector not only for 2025, but also over the next five years. With slowing inflation and lower interest rates, liquidity and stabilizing yields for real estate are bolstering investors’ confidence in the coming year.
However, the real estate market is still recovering, and institutional investors are slow to return to the market. When determining a rebound for sectors, the occupational market and future pipeline are crucial. Despite this uncertainty, opportunities are growing for investors seeking re